The Bitcoin price has been in a downward or at least negative trend since reaching the all-time high on March 14. Although it may feel negative, because we were of course used to those enormous increases of late.
According to Rekt Capital, we can expect further price drops for Bitcoin in the next two weeks.
Bitcoin in the Danger Zone
Rekt Capital claims in a new analysis that Bitcoin is in the “post-halving danger zone” and that we can therefore still correct from here. That danger would remain for about two weeks.
“If there is any further downside volatility where we fall below the low end of this range, it should happen during the next two weeks,” the analyst said on Twitter.
In the graph shared by Rekt Capital we clearly see the similarities between Bitcoin’s current cycle and the price development around the 2016 halving.
The observant reader will immediately see that the 2020 halving is missing. That’s probably because the graph fits less well here. We should also not forget that at the time we were dealing with the COVID-19 pandemic, which had a major grip on the world.
As a result, uncertainty struck and Bitcoin also responded quite violently.
There is no shortage of uncertainty
By the way, there is no shortage of uncertainty for Bitcoin. We are of course affected by US inflation, which is rising again, forcing the Federal Reserve to postpone its interest rate cuts.
In addition, this week the American economy suddenly grew less rapidly than everyone initially thought. To top it all off, we also have geopolitical tensions and the Japanese yen, which looks very weak and could therefore indirectly pose a threat to the market.
The Japanese central bank owns a lot of US government bonds, which it could sell to support the yen. If they do, yields on US government bonds will skyrocket, making it attractive for investors to jump in and Bitcoin may lose attention.
All in all, there are sufficient factors that argue that the picture for the Bitcoin price is still somewhat cloudy in the short term.
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