Following a period of relentless bullish momentum, Bitcoin (BTC) recently retraced below $61,000, a correction considered necessary ahead of the upcoming halving event.
Over $220 billion were lost across the market in just two days, impacting altcoins such as Solana (SOL), Dogecoin (DOGE), and Ripple (XRP). However, sentiment shifted following the latest US Federal Open Market Committee (FOMC) meeting.
Analyst Rekt Capital identified BTC’s entry into the “Danger Zone,” historically signaling retracements before a pre-halving period.
The impending Bitcoin halving, reducing miner rewards by half, is anticipated to trigger a post-halving rally. Technical analysts had highlighted previous post-halving returns of 9,000%, 4,000%, and 700%, suggesting a potential 200% return in this fourth halving cycle, pushing BTC’s price towards $200,000.
While Bitcoin and altcoins have recovered most losses, concerns persist regarding further corrections, prompting caution within the crypto community. Analysts stress the importance of maintaining composure during market fluctuations.
Some crypto firm believes that BTC is facing resistance at $69,000, highlighting the monthly Relative Vigor Index (RVI) crossing a .21 value, historically indicating a cycle top around ten months ahead – potentially December of this year.
“Corrections mitigate the risk of parabolic price action, which can lead to a double top, challenging to navigate. Bitcoin remains data-driven, whether the cycle accelerates or not,” advised analysts.
As Bitcoin’s halving approaches, investors remain vigilant, anticipating potential market shifts and capitalizing on opportunities presented by post-halving returns.
