A popular cryptocurrency analyst has recently identified possible parallels between the current price movements of the flagship cryptocurrency Bitcoin (BTC) and its 2016 bull run, even after a recent price correction.

According to pseudonymous cryptocurrency analyst Rekt Capital, Bitcoin’s price action has been mirroring its 2016 cycle, with further declines observed in the weeks following the halving event. This recent dip falls within a zone dubbed the “Post-Halving Danger Zone” by the analyst, aligning with a similar price trend seen in 2016.

The analysis, shared with Rekt Capital’s over 450,000 followers on the microblogging platform X (formerly known as Twitter), highlights that during the 2016 cycle, Bitcoin experienced an 11% price drop roughly three weeks after the halving. Rekt Capital suggested that the current cycle might see similar downside volatility within the next few days. This window coincides with the remaining period of the “Post-Halving Danger Zone.”

#BTC

The 2016 cycle may be more similar to the 2024 cycle than we think – Part 2

Over a month later and Bitcoin continues to prove how it is more similar to the 2016 cycle

Aside from the similarities mentioned over a month ago, here are new ways the 2016 has repeated in this… https://t.co/G69vAAvRMK pic.twitter.com/77Blj13V1i

— Rekt Capital (@rektcapital) May 1, 2024

The analyst also drew attention to the pre-halving price movements in both 2016 and 2024. After breaking out of a consolidation phase, Bitcoin witnessed a pre-halving rally in both cycles that was then followed by a retracement period around four weeks before the halving event.

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While the initial downward movement in the 2016 retracement was short-lived, Rekt Capital emphasizes the importance of Bitcoin maintaining a price level above $60,000 to potentially avoid a similar extended decline.

Bitcoin is at the time of writing trading at $59,170 after dropping below the $57,000 mark earlier this week amid an aggressive cryptocurrency market sell-off. Notably, the recently launched spot Bitcoin exchange-traded funds (ETFs) recorded outflows amid the sell-off.

Nevertheless BNP Paribas, the second-largest bank in Europe whose asset management arm has over $600 billion in assets under management, has gained exposure to the flagship cryptocurrency Bitcoin via these funds.

Featured image via Unsplash.

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• Source: https://www.cryptoglobe.com/latest/2024/05/bitcoin-mimics-2016-pattern-analyst-suggests-price-dip-may-be-temporary-pen_spark/