Pre-Halving Rally and Imminent Correction

A well-known cryptocurrency strategist who works under the pseudonym Rect Capital has shared a detailed forecast on the development of Bitcoin (BTC) with his 59,700 subscribers on YouTube after its double-digit rally in recent days. With the planned Bitcoin halving in April approaching, the analyst says the leading cryptocurrency’s current price action shows a more bullish trend than previous pre-halving periods.

Pre-halving rally higher than expected

“When looking at historical returns 60 days prior to the halving, it is common to see rallies prior to the halving. “What we are currently seeing is also a rally before the halving, but what is noteworthy is that it is far exceeding expectations.” Rect Capital explains.

The analyst emphasizes that Bitcoin still has considerable upside potential before the halving event. “This pre-halving rally remains strong and is expected to continue like this for a few more weeks. However, it is likely that we will see a turning point before the halving,” Add.

Correction and Lateral Movement Expectations

As for the potential correction and its duration, the pseudonymous strategist offers a cautious outlook:

“After such an explosive pre-halving rally, I wouldn’t be surprised to see a correction followed by a period of sideways movement for a few months. Although the vertical price action is encouraging, it is not sustainable in the long term.

“If we’re lucky it’s likely to be a pre-halving correction, whether it’s 10%, 15%, 20% or even 25%. But improvement is needed, as it contributes to the health of the cycle,Rect Capital concluded.

This analysis anticipates an exciting phase for Bitcoin and the broader cryptocurrency market, as investors and enthusiasts prepare for the impact of the upcoming halving. Expectations of a powerful pre-halving rally, followed by a healthy correction, provide an interesting perspective on cryptocurrency market dynamics in the coming months.