One widely followed cryptocurrency analyst believes that Bitcoin (BTC) has just begun its pre-halving phase and may follow a historical pattern over the next couple of months.
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He says Bitcoin may temporarily rise above the key diagonal resistance trend line, which is currently around $46,000, but remain below it on the monthly chart, based on the historical price pattern.
The Bitcoin halving event occurs every four years when miner rewards are cut in half.
Reckitt Capital says,
“How can we reconcile the following historical trends?
– The rising phase began before half.
But historically, Bitcoin has failed to cross the aggregate line before the halving.
– It has also historically failed to break the resistance of the four-year cycle (about $46,000 in this cycle).
Taking all of these things into consideration, here's how Bitcoin can fit in with all of these trends:
+Bitcoin will need to produce limited upside in the rally phase before the halving.
+ This uptrend will end as a bullish wick at the end of February, as it happened last month and also in 2019 for example.
+ Then it may form another range at the March highs, enabling altcoin rallies to take center stage.
+ Then it finally pulled back to track the pre-halving a few weeks before the halving event itself.
This could be Bitcoin's path to the upside outside the overall diagonal but still below it in terms of the monthly candle close at the end of the month in the slowly ending pre-halving period.”
Bitcoin is trading for $47,387 at the time of writing, up 2.80% in the past 24 hours.
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