Any retrace in the price of Bitcoin over the next two weeks could be investors’ last chance to scoop up Bitcoin at “bargain-buying” prices, says pseudonymous trader Rekt Capital.

Bitcoin investors may only have a two-week window to potentially buy Bitcoin at “bargain-buying” prices before a pre-halving rally kicks off in February, says pseudonymous crypto trader Rekt Capital.

In a Jan. 29 X post to their 349,000 followers, Rekt said that market action around the Bitcoin BTC $43,371 halving typically plays out in five stages, with the first three stages occurring before the halving.

Rekt noted that in previous Bitcoin halvings, there has often been a steep dip in the months before, generating big returns for investors, with 2024 looking to be no exception.

The Bitcoin halving — currently scheduled for April — refers to mining rewards being cut in half for Bitcoin miners and is widely viewed as a bullish catalyst for the price of BTC.

Noting that Bitcoin had already gone through a roughly 18% retrace in January, Rekt said there’s now a two-week window in which Bitcoin can be expected to undergo another significant pullback.

“Generally, any retrace during this period likely represents one of the final bargain-buying opportunities for Bitcoin in the Pre-Halving period.”

After this, Bitcoin tends to enter what Rekt calls the “pre-having rally” phase roughly 60 days out from the halving event.

Denoted by the light blue box on the graph attached, short-term traders attempt to “buy the hype” heading into the halving, only to later “sell the news” around the time of the actual halving.

This “sell the news” event typically arrives one to three weeks from the halving itself in what Rekt calls the “pre-halving retrace.” In 2016, there was a 38% price dip in the weeks before the halving, while in 2020, there was a 20% drawdown.

Following a successful halving, Rekt details a long and “boring” period of mostly sideways price action, where many investors are “shaken out” due to disappointment around price action following the halving. Historically, this has lasted an average of 150 days.

Finally, Rekt explains that Bitcoin enters the “parabolic uptrend” phase, where after months of sideways chop and general accumulation, Bitcoin experiences stages of accelerated growth.

Source - CoinTelegraph

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