Bitcoin (BTC), which is the most valuable cryptocurrency on the market in terms of trading volume and capitalization, has just begun a fresh positive ascent. Not only has it reclaimed territory that it had previously lost, but it has also surpassed resistance levels, which has stimulated confidence among investors.
The price of Bitcoin has undergone a spectacular gain of over 6% over the span of twenty-four hours and a massive 11% leap over the course of the last seven days. At the moment, the cryptocurrency is trading at $47,900, which is just below its 25-month high of $49,000.
The Path of Bitcoin in the Context of the Pre-Halving Rally
Nevertheless, in the middle of the enthusiasm in the market, it is essential to take into consideration historical patterns and the possible influence they might have on the trajectory of Bitcoin in the time leading up to the impending halving event. Rekt Capital, a distinguished market expert and analyst, draws attention to two significant historical patterns:
To begin, it should be noted that the "Pre-Halving Rally" phase looks to be beginning. Before the halving event takes place, there is a period of time known as this phase, during which the price of Bitcoin suffers a strong spike.
Second, according to the statistics from the past, Bitcoin has had a difficult time breaking through the macro diagonal barrier before to the halving, which Rekt estimates to be near $47,000. In addition, it has been tough for it to overcome its resistance levels from the Four Year Cycle, which are around $46,000 in the present cycle.
It is important to note that even if the price has above these resistance levels, it is necessary to observe a consolidation or continuation of the uptrend. This is because a retracement may occur, which would result in the price of Bitcoin being trapped between these resistances.
It is possible that Bitcoin may create minimal upside during the pre-halving rally period, which will culminate in an upward wick happening near the end of February. A similar trend has been seen in the months before to 2019, as well as throughout 2019.
As a result of this, Bitcoin may build another range around higher price levels in March, which may make it possible for altcoin rallies to steal the spotlight. Last but not least, Bitcoin may see a drop a few weeks before the halving event, which would result in a pre-halving retrace.
During this progressively closing pre-halving time, this suggested path predicts that Bitcoin may overcome the Macro Diagonal resistance with an upward wick, but it would stay below it in terms of end-of-month monthly candle closures. This would need Bitcoin to remain below the resistance.
There is a flashing buy signal on the Bitcoin Bull Run Indicator.
An important indication that indicates the possibility of upward movement has been brought to light by cryptocurrency expert Ali Martinez, who has contributed to the rising positive feeling that surrounds Bitcoin.
During the course of the day, the Super Trend indicator displayed a buy signal on the monthly chart of Bitcoin. The accuracy with which this technology forecasts positive movements in Bitcoin markets has earned it a well-deserved reputation.
The history of the indicator demonstrates how important this purchase signal is by highlighting its relevance. According to the analyst, the Super Trend has given four purchase signals from the beginning of Bitcoin's existence, and all four of these signals have been verified, which has resulted in significant monetary profits. The total sum of these profits is an astounding 169,172%, 9,900%, 3,680%, and 828%, respectively.
Notwithstanding the positive forecast, Anlayst also draws attention to a prospective technique that has the ability to influence the price of Bitcoin in the near future.
According to the Bitcoin liquidation heatmap, a situation is now taking place in which liquidity seekers have the potential to bring the price of Bitcoin down below $45,810. This action would be taken with the purpose of initiating liquidations that would amount to a considerable $54.73 million.
It is essential to have a clear understanding of the fact that liquidity hunters seek to take advantage of market swings in order to induce forced liquidations among traders who are too leveraged. They are able to push these traders to liquidate their holdings by purposefully driving the price down, which may result in cascade liquidations that have the ability to accentuate price moves in a negative direction.
