Trader Suggests a Final Opportunity to Buy Bitcoin at a Discount
In a recent post on X, anonymous crypto trader Rekt Capital, shares their views on the five phases of the upcoming Bitcoin halving. So, what are these phases and how can we use them to navigate the coming month?
The first stage is the current phase we are in, the run-up to the Bitcoin halving, which is expected to happen in roughly 77 days. According to Rekt Capital, retraces during the pre-Halving period, like Bitcoin’s recent -18% in January, often present valuable investment opportunities.
The trader believes there is now a narrowing 14-day window potentially indicating another imminent pullback.
This leads to the second phase, two weeks after phase one, with only around 60 days left. Rekt describes this cycle as Bitcoin approaching a Pre-Halving rally phase, where investors and traders often “Buy the Hype” in anticipation of the event and then “Sell the News” shortly before, leading to a Pre-Halving retrace just weeks before the Halving itself.
After the rally there could be a retrace, and historically, a significant Pre-Halving retrace often happens a few weeks before the Halving event, with past occurrences showing -38% in 2016 and -20% in 2020, and these retraces can last several weeks, leading investors to doubt the Halving’s positive impact on prices.
Rekt describes the Pre-Halving retrace as often succeeded by a multi-month re-accumulation phase, lasting up to 150 days, during which many investors exit due to boredom, impatience, and disappointment from the lack of immediate significant returns on their Bitcoin investment post-Halving.
And Finally – A Parabolic Uptrend
After shaking out the weak hands, it’s time to soar, with new all-time highs coming. Others echo this view, with Anthony Scaramucci, founder and managing partner at Skybridge Capital, speaking at the Scott Melker podcast. Scaramucci agrees on the importance of the Halving cycle, and his prediction is eye watering.
The day that Bitcoin halves, multiply it by four. 18 months later and it’s been uncanny that that’s been the price of Bitcoin. I’m using a $35,000 number at the halving and that’s conservative […] Let’s say we’re at $50,000 in April, then it’s a $200,000 handle. Let’s say we’re at $60,000, it will be $240,000.