Bitcoin (BTC) has been sitting around the $26,000 mark for more than a month following an 11% drop in the previous month.
Are there any similarities between Bitcoin’s current behavior and its past patterns?
Rekt Capital discussed the key phases of Bitcoin’s price movements, comparing the pre-halving years of 2019 and 2023. Analyst divided these phases into three distinct periods: the pre-halving period, post-halving resistance, and post-halving parabolic phase.
The analysis pointed out that Bitcoin currently appears to be trading within a defined range, with a high resistance level and a low support level. This range has similarities to the situation observed in 2019. However, Rekt Capital highlighted that Bitcoin tends not to revisit the range’s lower support level in the macro range, even if historical trends were to repeat.
Another key observation is the potential for a market crash during the pre-halving period, which could offer a buying opportunity for investors. Rekt Capital suggested that Bitcoin might experience a pullback into a higher low, with the specific level depending on when the crash occurs.
He said that we might be seeing a relief rally right now. If this rally reaches its highest point, Bitcoin could drop back to $26k and turn it into a resistance level. This is similar to what happened before when a relief rally was followed by Bitcoin dropping below $26k and then making it a resistance before continuing to drop.
Bitcoin’s current price of over $26,700 marks a positive shift from the long-standing support at $25,000 that has been holding since June. If Bitcoin successfully breaks through the $27,000 barrier, it will be a significant move.
The Federal Reserve’s decision this week will impact cryptocurrency prices. Most experts expect the Fed to keep interest rates as they are.
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