In the ever-evolving world of cryptocurrencies, one analyst has raised an intriguing possibility. Rekt Capital, a seasoned trader, has sounded a warning that Bitcoin’s price (BTC) might be in for a historical déjà vu, potentially experiencing a dip before the year’s end.
Through their social media platform, Rekt Capital pointed out that BTC could plummet to $20,000 this year if it follows a pattern observed in both 2015 and 2019, two years preceding the halving event.
A Familiar Pattern
“BTC: 2015, 2019, and perhaps even 2023? Bitcoin has a track record of revisiting its macro high before the halving,” they wrote. This intriguing statement underlines the idea that history could be poised to repeat itself in the world of digital currency.
2015
2019
And maybe even 2023?
Bitcoin has a history of revisiting the Macro Higher Low (blue circle) in its Pre-Halving period$BTC #Crypto #Bitcoin pic.twitter.com/Ei2Rm834pQ
— Rekt Capital (@rektcapital) September 21, 2023
Another compelling argument Rekt Capital presents is the existence of a gap created by trading on the Chicago Mercantile Exchange (CME) within this price range.
The CME Gap
“If Bitcoin continues to form lower price highs, could BTC fill the CME gap at around $20,000 by late this year or early 2024? If so, Bitcoin might finally revisit its highest macro point in this cycle (blue circle),” they emphasized. This gap in trading activity could be a key indicator of what’s to come.
If Bitcoin continues to form Lower Highs…
Could BTC fill the CME Gap at ~$20,000 later this year or early 2024?
If so, Bitcoin could finally revisit its Macro Higher Low in this cycle (blue circle)$BTC #Crypto #Bitcoin pic.twitter.com/XOgR8VHlYf
— Rekt Capital (@rektcapital) September 21, 2023
Rekt Capital also noted that Bitcoin has dipped below the 50-week Exponential Moving Average (EMA), suggesting potential trouble ahead.
A Warning from EMA
“The last time BTC was rejected from the 50-week EMA, Bitcoin retraced -20%. If history repeats itself and BTC sees a -20% rejection from here, the price would drop to the area of around $21,000. This is where the CME daily gap is,” they explained. This technical analysis adds to the complexity of the situation.
A Glimmer of Hope
However, Rekt Capital is quick to point out that their prediction of a Bitcoin price drop could be invalidated if BTC manages to break through a crucial price level in the short term.
“It’s really quite simple. If Bitcoin can break through the lower upper resistance, then it will have a good chance of properly challenging a breakout of around $31,000. But until then, there’s always room for further decline,” they stressed. There’s still a glimmer of hope in these uncertain times.
According to the trader, it’s likely that Bitcoin won’t revisit the $31,000 level until after the next halving event, expected to occur in April 2024, when miner rewards are reduced by 50%.
It's really simple
If $BTC is able to break the black Lower High resistance then it'll have a good chance of properly challenging for a ~$31k breakout
But until then…
There's always scope for additional downside#Crypto #Bitcoin pic.twitter.com/adBDReK1Wj
— Rekt Capital (@rektcapital) September 21, 2023
The Future Beyond the Halving
They also predicted a parabolic surge after the upcoming halving, which could send BTC soaring above $65,000.
“If $31,000 was the maximum for 2023, then the next time we see these prices will be within months, right after the halving. The only difference between now and then? In this pre-halving period, BTC could still pull back from here. But after the event, the price of Bitcoin would rise much higher than current levels,” they pointed out.
In conclusion, the crypto world is no stranger to unpredictability, and Rekt Capital’s insights offer a glimpse into a possible future for Bitcoin. Whether it repeats its history or charts a new course remains to be seen, but one thing is for sure: the cryptocurrency market is always full of surprises.
FAQs
Is Bitcoin’s price really going to drop to $20,000?
Rekt Capital suggests it’s a possibility based on historical patterns, but nothing is certain in the world of cryptocurrencies.
When is the next Bitcoin halving event?
The next halving event is expected in April 2024, according to Rekt Capital.
Could Bitcoin’s price rise after the halving?
Yes, Rekt Capital predicts a potential surge above $65,000 post-halving.
Should I be worried about my Bitcoin investments?
It’s always wise to stay informed and be prepared for market fluctuations when dealing with cryptocurrencies.
Where can I access more information about Bitcoin’s price trends?
For real-time updates and in-depth analysis, keep an eye on reputable cryptocurrency news sources and trading platforms.
WARNING: This is an informational article. Geek Metaverse is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that cryptoasset investments are not regulated in some countries.
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