- Rekt Capital has analyzed the five phases of the Bitcoin halving.
- The phases include Pre-Halving Period, Pre-Halving Rally, Pre-Halving Retrace, Re-Accumulation, and Parabolic Uptrend.
- Pre-Halving Retrace instills Fear, Uncertainty, and Doubt (FUD) among investors.
Rekt Capital, a renowned crypto trader and analyst, has analyzed the five phases of the Bitcoin halving. The analyst shared his thoughts on X (formerly Twitter), explaining what he expects to happen in the remaining days before the upcoming Bitcoin halving event.
The crypto analyst divided the period before the Bitcoin halving into five phases: Pre-Halving Period, Pre-Halving Rally, Pre-Halving Retrace, Re-Accumulation, and Parabolic Uptrend. He shared a screenshot of his technical analysis, using it to explain the five phases of Bitcoin Halving.
According to Rekt Capital, the pre-alving rally is the phase where investors seek opportunities to enter the market. He noted that from a historical perspective, any deeper retraces occurring during this period tend to generate fantastic returns on investment for investors in the several months after the Halving.
The analyst noted that the next phase, the Pre-Halving Rally, occurs approximately sixty days before the Halving. According to him, this phase is initiated by investors who “Buy the Hype” to “Sell the News.”
After the Pre-Halving Rally comes the Pre-Halving Retrace, a phase that Rekt Capital said tends to occur around the actual halving event. According to him, this event has a way of instilling Fear, Uncertainty, and Doubt (FUD) among investors. They question whether the Halving was a bullish catalyst on price or otherwise. The crypto trader cited examples with the 2016 and 2020 Halving events, when Bitcoin retraced 38% and 20%, respectively.
Rekt Capital noted that the Pre-Halving retrace precedes a multi-month re-accumulation. He explained that during this phase, many investors get shaken out due to boredom, impatience, and disappointment with the lack of significant results in their BTC investment in the immediate aftermath of the Halving.
The final phase is the Parabolic Uptrend, which the analyst described as the period when Bitcoin experiences accelerated growth to all-time highs (ATH). According to him, this phase is characterized by a breakout from the re-accumulation area into the parabolic uptrend.
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