Bitcoin (BTC) Price Set to Enter “Danger Zone” – Time to Back-Off or Bag More Coins?
Bitcoin's price didn't go as high as expected last week, hitting a roadblock at around $74,000. This roadblock led to a drop below $66,000 before bouncing back up to over $68,000. Analysts saythe recent struggle suggests we might enter a danger zone" for Bitcoin.
This is a time when the price might face even more challenges.Some people might want to step back and wait to see what happens. Others might see it as a chance to grab more coins while the price is lower.Read on to understand how this might impact BTC's price.
Bitcoin's Pre-Halving' Danger Zone' - How Will This Influence Price?A few days ago, analyst Rekt Capital posted on X that Bitcoin might soon enter a danger zone" before it halves. According to the crypto analyst, this is a time when its price has historically dropped before halving.
Rekt Capital wrote:
In 2 days, Bitcoin will officially enter the Danger Zone' [...] where historical pre-halving retraces have begun,
Rekt Capital shared in a March 17 X post.
The analyst further pointed out that Bitcoin's price usually dipped 14 to 28 days before the halving.
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
According to the analyst, in 2016, Bitcoin halved; BTC's price recorded a massivedrop before the halving. The price fell by 40% during the 14 to 28 days preceding the halving.
Similarly, in 2020, there was another drop in the price of Bitcoin before the halving. But this time, the drop was not severe.
The price fell by 20% in the weeks leading up to the halving event. Based on this, the question now is: how will this influence BTC's price?
Potential Price Drop on the HorizonHistorically, Bitcoin's price experiences a retracement in the weeks leading up to its halving event. In January, Rekt Capital predicted what could happen with Bitcoin before halting.
The analyst said there would likely be a pre-halving rally," meaning Bitcoin's price would increase.
5 Phases of The Bitcoin Halving
1. Pre-Halving period
Approximately 77 days remain until the Bitcoin Halving in April 2024
Historically, any deeper retraces that occur during this orange period tend to generate fantastic Return On Investment for investors in the several... pic.twitter.com/8JC8qX2IVm
- Rekt Capital (@rektcapital) January 29, 2024
However, after this rally, there is a pre-halving retrace" around one to three weeks before the halving. This prediction turned out to be accurate. Bitcoin started to surge in mid-February, surpassing its previous cycle's all-time high of $68,990 in March.
This marks the first time Bitcoin has ever done so before a halving event. However, with the next halving forecast for April 20, Bitcoin's price has fallen 9.5% from its March 14 all-time high of $73,835 to its current price of $67,387.This drop could be the beginning of the predicted pre-halving retrace."
Even though past performance doesn't guarantee future results, Bitcoin's historical price behavior around halving events suggests that the price might drop more as we get closer to the halving. Meanwhile, looking at the longer timeframe, other top crypto enthusiasts are bullish on the coin.
Investors Stay Bullish Despite Incoming Market DipAt a recent event held in Bangkok on March 17, Binance's current CEO, Richard Teng, shared his optimism about Bitcoin's future.As reported by Bloomberg, the CEO believes that the coin will keep breaking records and reach over $80,000 by the end of this year.
He thinks Bitcoin is just getting started, especially as big investors are entering through ETFs in the United States. According to Dune Analytics, these investors have invested almost $57 billion through ETFs. Meanwhile, Teng warned that Bitcoin reaching this target will not be smooth sailing.
There will be ups and downs along the way. But what's giving him confidence is the supply that is reducing and demand staying strong. Based on this, BTC's price will likely climb higher.
Teng is not the only enthusiast who is bullish on BTC. On March 15, the co-founder and CEO of Crypto.com, Kris Marszalek, told CNBC that the recent Bitcoin drop is a good thing.
According to him, the price is a healthymove, removing some of the leverage that built up.
Further, the CEO mentioned that its exchange is seeing Bitcoin on an upward trend similar to late 2020 and early 2021. That's when the price increased from below $20,000 to over $60,000 in just a few months. Marszalek believes Bitcoin's price will rise soon as it is an asset meant for long-term holding.
Supporting his view, the technical indicators below signal more positivity for Bitcoin.
Bitcoin Technical Analysis - A Mixed Bag of Technical Indicators
The market stays firmly above the $64,780 support line, suggesting that the bulls are active and in control. Adding to the bullish sentiment, Bitcoin trades above the Simple Moving Average (SMA) indicators, further reinforcing its upward momentum.
The Money Flow Index (MFI) indicator at 64 also points to bullish conditions, implying that the buying pressure is relatively intense.
Moreover, Bitcoin's position above the moving average line in the Bollinger Band indicator is favorable. However, it's worth noting that the MACD indicator shows red histogram bars, which could be a bearish signal.
Also, Bitcoin has formed a Doji candlestick, signaling indecision in the market. This divergence in technical indicators creates a mixed picture of Bitcoin's price movement.
As such, investors may consider waiting for the price to drop, as predicted by Rekt Capital. That would be the best opportunity to accumulate more Bitcoin at a lower cost.
However, there is an alternative worth considering for investors who are not entirely convinced by Bitcoin's price movement or potential. This project offers investors an opportunity to diversify their portfolios.
Exploring a Promising Alternative in the Crypto Space
Since the start of 2024, the crypto market has flourished, with coins like Bitcoin (BTC) hitting new levels. Investors profiting from this BTC surge are now looking for other low-cap projects with solid communities and well-designed road maps.
The project that fits the profile is the Smog token (SMOG), which entered the market a few weeks ago. Smog tokens are already becoming investors' favorite tokens. The token jumped by nearly 600% since it became tradeable. That means investors who invested $100 are 6X up - $600. Yet, the central marketing of the project has not started.
Despite this surge, other things make this project unique.
Smog Token: The Meme Project Fulfilling Investor's DesireSmog token focus its energy on rewarding its community. The team already allocated 35% of the total supply for only airdrop. Not only that. The project also created a competition for its community to entertain investors. The winners will be rewarded with Smog tokens.
All these will help attract more people to the Smog community. Another factor that interests investors in this player is that it is under the Solana network. Right now, in the crypto market, the Solana network is producing the best-performing meme coins (Dog Wif Hat (WIF) and Bonk)
To join the project, visit any Solana DEX like Jupiter or Bonk bot to buy the token.
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