Bitcoin price is about to enter the ‘pre-halving danger zone’

-->Historically, the bitcoin price has fallen in the weeks before the halving and such a downward movement could repeat itself again, analysts think.

Bitcoin price in the “danger zone”

Bitcoin, according to some, is just days away from entering a pre-halving “danger zone.” That’s a period when the price has historically fallen in the run-up to its halving, according to analyst Rekt Capital.

“In 2 days, Bitcoin will officially enter the ‘Danger Zone’ […] where historic pre-halving pullbacks have begun,” said crypto analyst Rekt Capital in an X-post on March 17. Historically, the bitcoin price has fallen in the 14 to 28 days leading up to its halving. During the 2016 halving, bitcoin fell 40% during that time, and in 2020 it fell 20%.

In January, Rekt Capital predicts a “pre-halving rally” about 60 days before the halving, followed by a “pre-halving pullback” about one to three weeks before the halving.

The rally prediction turned out to be correct as bitcoin started to rise in mid-February. Analysts were surprised in March when bitcoin surpassed its previous cycle’s all-time high of $68,990, marking the first time BTC has ever done so before a halving event.

The next halving is predicted in just under 33 days, on April 20, according to CoinMarketCap. However, the bitcoin price has already fallen 8.5% from its all-time high on March 14 of $73,835 to the current price of $67,537, according to Cointelegraph Markets Pro.

#BTC

In 2 days, Bitcoin will officially enter the “Danger Zone” (orange) where historical Pre-Halving Retraces have begun

Historically, Bitcoin has performed Pre-Halving Retraces 14-28 days before the Halving

In 2020, this retrace was -20% deep

In 2016, this retrace was -40%… pic.twitter.com/rnKjznsGHk

— Rekt Capital (@rektcapital) March 17, 2024

CEOs of Crypto.com and Binance optimistic about Bitcoin

According to the relatively new Binance CEO Richard Teng, bitcoin will continue to break price records and will go past $80,000. Teng claims that bitcoin is “just getting started” and points to the flood of institutional money flowing into BTC. The new US exchange-traded funds (ETFs), which have managed $57 billion in a short time, are in particular demand, according to data from Dune Analytics.

The Binance boss says he expects bitcoin to rise above $80,000 “due to supply reduction and continued demand,” but it won’t be a “straight line” and there will be price swings along the way.

Crypto.com co-founder and CEO Kris Marszalek told CNBC on March 15 that bitcoin’s recent price drop was a “healthy move that removes some of the leverage that has built up.”

He added that his exchange sees bitcoin in an uptrend that it last saw in late 2020 and early 2021, when it rose from under $20,000 to over $60,000 in just over three months and said the current volatility “is actually quite low compared to what we’ve seen in previous cycles.”

Marszalek expects a “steady build-up” in the price, with “less sudden moves” because it is an asset “you want to hold for decades, not days or weeks.”