- Bitcoin following the price action of 2015 and 2019 market cycle. Will Bitcoin drop by another 25% to 30%.
- In 2015, approximately 200 days before the halving BTC dropped by more than 20% and in 2019 it dropped by more than 35%.
Rekt Capital, a prominent crypto analyst with a substantial Twitter following, recently stirred up a conversation in the crypto community with a thought-provoking tweet. In the tweet, he compared the price action of Bitcoin in 2023 to that of 2015 and 2019, highlighting the similarity in retracement percentages approximately 200 days before the Halving event. This tweet has sparked a debate in the cryptocurrency space about whether history could provide insights into Bitcoin’s current trajectory. In this article, we’ll delve deeper into the analysis and discuss the implications of these comparisons.
Bitcoin’s Historical Patterns
To fully understand the significance of Rekt Capital’s tweet, it’s essential to look back at the historical context. Bitcoin, the pioneering cryptocurrency, has undergone several halving events since its inception in 2009. These events, which occur approximately every four years, reduce the rate at which new Bitcoins are generated, leading to decreased supply growth. Historically, Bitcoin’s price has exhibited distinctive patterns around these halving events.
The 2015 Halving
In 2015, Bitcoin experienced its second halving event. Around 200 days before the halving, the price of Bitcoin retraced by approximately 24%. This was a significant correction, but it was followed by an impressive bull run. Bitcoin went on to reach new all-time highs, marking the beginning of the 2017 bull market, which saw BTC’s price skyrocket to nearly $20,000.
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The 2019 Halving
In 2019, Bitcoin underwent its third halving. Interestingly, around 200 days before this event, the price retraced even more, by approximately 38%. This retracement might have caused some concern among investors, but it was followed by a remarkable recovery. Bitcoin’s price eventually climbed to new heights in late 2020 and early 2021, reaching over $60,000.
Comparing 2015, 2019, and 2023
Let’s focus on Rekt Capital’s tweet, which suggests that Bitcoin in 2023 is retracing similarly to both 2015 and 2019, approximately 200 days before the halving. The implication here is that historically, retracements of this magnitude have been followed by significant upward price movements. According to Rekt Capital, Bitcoin can retrace by 25% to 30%, potentially reaching around $20,000. The $20,000 level is significant because it provided support to Bitcoin during the US bank failure of Silicon Valley Bank, and there is also a CME gap around this level.
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Conclusion
Rekt Capital’s tweet has ignited a conversation about Bitcoin’s price retracement in 2023 compared to 2015 and 2019. Historical patterns suggest that significant retracements around 200 days before halving events have often been followed by substantial price increases. However, the cryptocurrency market has evolved, and various external factors can influence Bitcoin’s performance. As with any investment, thorough analysis, risk management, and a long-term perspective are essential for navigating the crypto space successfully. Whether Bitcoin in 2023 is more like 2015 or 2019 remains to be seen, but it is an intriguing topic for crypto enthusiasts to follow as the market continues to evolve.
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
