Following cryptocurrency analysts believe that Bitcoin (BTC) could begin its pre-halving rally as early as next week.
Pseudonymous analyst Recto Capital told his 395,800 followers on social media platform X that based on historical data, Bitcoin is about to enter a pre-halving uptrend.
According to analysts, historical data suggests that Bitcoin price movements tend to pass 5 stages It is based on a halving, which is an event where the issuance of new BTC to miners is halved.
The next halving is scheduled for April, and Recto Capital believes Bitcoin is transitioning from a pre-halving retrace to a pre-halving rebound.
“If history is any indication, Bitcoin should begin its pre-halving rally as early as next week.”
Looking at the trader’s chart, he suggests that Bitcoin will witness one more reaccumulation after the pre-halving rally before entering a parabolic uptrend well above $90,000. It seems there is.
For now, Recto Capital believes Bitcoin is well-positioned to break above the immediate resistance near $43,786 after hitting that level multiple times over the past two months. .
“It was rejected from last week’s range high (red) and formed an upward core and a new downside high.
However, despite rejecting last week’s range high (RH), BTC is looking to revisit RH this week.
If this strength persists, it can be considered that RH tolerance is weakening. ”
The analyst also notes that Bitcoin has been gaining bullish momentum since BTC’s Relative Strength Index (RSI) indicator broke above the diagonal resistance level, negating a potential bearish divergence signal on the weekly chart. He also points out that it looks like this.
A bearish divergence typically appears when the RSI momentum indicator enters a downtrend while the asset price continues to rise. This signal suggests that a bearish reversal is on the horizon as bullish momentum weakens.
Recto Capital said:
“As a new weekly close approaches, the Bitcoin RSI has successfully broken out of the downtrend (red), suggesting that the bearish divergence has been invalidated.”
At the time of writing, BTC is valued at $43,161, up 1.22% in the past 24 hours.
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