Bitcoin In 'The Danger Zone,' Says Trader Who Targets 22% Drawdown
Portfolio Pulse from Murtuza Merchant
Crypto analyst Rekt Capital warns of a 'danger zone' for Bitcoin ahead of its halving event, predicting a potential 22% drawdown but downplaying fears of a major crash. The volatility is seen as within historical norms for pre-halving phases. The Bitcoin halving, reducing new bitcoins mined, is anticipated later this month, with market volatility expected to be a key challenge for investors.
April 04, 2024 | 4:23 pm
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Bitcoin is in a 'danger zone' according to Rekt Capital, with a potential 22% drawdown expected ahead of the halving event, but a major crash is deemed unlikely.
The analysis by Rekt Capital suggests a negative short-term impact on Bitcoin's price due to the anticipated volatility ahead of the halving event. However, the expectation that the drawdown will not exceed 22% and the assertion that a major crash similar to previous cycles is unlikely provides a nuanced view. The historical context of pre-halving volatility being within norms further supports the analysis.
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IMPORTANCE 90
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