Bitcoin $54,501.99An analyst who correctly predicted a pre-halving pullback is mapping out the worst-case price scenario for BTC, noting that Bitcoin goes through four-year cycles, with miner rewards being cut in half during each of these cycles.
Past Cycles and Resistance Levels
In a video update to his 86,100 subscribers on YouTube, pseudonymous analyst Rekt Capital noted that Bitcoin has had to deal with a “three-year resistance” level every four-year cycle. This level dates back to 2013. According to Rekt Capital, Bitcoin needed to overcome the three-year resistance at $700 in 2017 and $13,856 in 2021. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
In this cycle, the three-year resistance level is set at $46,000, and Bitcoin has already passed this level. However, the analyst emphasizes that Bitcoin could pull back to retest this level as support.
Possible Pullback and Support Level in Bitcoin
“Looking at how this crossover plays out, the fourth candle usually sets up potential retests of this three-year resistance to become new support. This could push the price to new all-time highs and beyond…”
“If we focus on the fourth candle and the halving candle, there’s always room for a retest of that three-year resistance throughout this year. And it looks like there’s potential for a retest of that level to become new support. That would mean we need to pull back to $46,000. That would mean we need to drop 19% this month.”
Possible Scenarios and Market Situation
The analyst noted that Bitcoin falling to $46,000 is a possible scenario this month, but he also emphasized that this is a low probability, as Bitcoin is currently in a halving year and not in a bear market.
As of the time of writing, Bitcoin is trading at $54,197, showing a slight increase on a daily basis.
Predicting future Bitcoin price movements is a complex process that depends on both technical analysis and market cycles. Historically, Bitcoin has been observed to test and break out of certain resistance levels in four-year cycles to reach new highs. However, market conditions and external factors can affect the likelihood of this scenario occurring.
It is important for readers to do their own research and learn more when considering such analyses. Bitcoin and other cryptocurrencies present both risks and opportunities for investors as highly volatile assets.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
