Crypto Trader Says Bitcoin (BTC) Retracement Could Lead to ‘Parabolic Uptrend’ – Here’s What He Means

A widely followed crypto analyst says that Bitcoin (BTC) backtracking before the halving could actually be a good thing.

Pseudonymous crypto trader Rekt Capital dives deep into pre-halving BTC activity for his 372,100 followers on the social media platform X.

The Bitcoin halving occurs approximately every four years. The pre-programmed event reduces the reward for Bitcoin miners by half, ultimately limiting the total supply of Bitcoin to 21 million coins.

According to Rekt Capital, BTC has historically used the halving to leap to new all-time highs.

“Black trendline tends to act as a resistance in the Pre-Halving period (orange circles)

But after the Halving, it gets broken & reclaimed as new support (black circle)

Then after a successful retest, BTC later springboards to new All Time Highs.”

Source: Rekt Capital/X

According to the trader, if BTC’s price lowers before the halving, it will only result in an even more explosive period after the event, currently expected in April 2024.

“Any deeper retracement during the Pre-Halving period will enable the future parabolic uptrend in the Post-Halving period.”

Source: Rekt Capital/X

According to the analyst, BTC is still steeped in the pre-halving phase.

“Bitcoin is still in the Pre-Halving phase

But after the Halving, Bitcoin will spend a few weeks in Re-Accumulation (red) before rally into a parabolic uptrend (green).”

Source: Rekt Capital/X

BTC is worth $37,594 at time of writing.

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