Bitcoin In 'The Danger Zone,' Says Trader Who Targets 22% Drawdown

Popular pseudonymous crypto analyst Rekt Capital is cautioning Bitcoin (CRYPTO: BTC) investors that the current period is a “danger zone” for the leading cryptocurrency.

What Happened: “This pre-halving retrace began around 30 days before the halving and so we are in the thick of the danger zone,” Rekt Capital told his followers on YouTube. “Because we’re still in the danger zone anything can still go. This is still volatility that’s supposed to get us closer to establishing a re-accumulation range at these highs, said the trader, referring to the range between $73,800 and mid-$60,000s.

The “danger zone” refers to a historically volatile period leading up to Bitcoin halving events, which reduce the number of new bitcoins mined and can impact price.

Rekt Capital emphasizes that the current volatility is within “historical norms” for this pre-halving phase.

However, the analyst also downplays fears of a major crash similar to the 40% correction experienced by Bitcoin before the 2016 halving.

“So very unlikely that we’re going to see a 40% pullback in this cycle,” he asserted.

Rekt Capital suggests a potential price floor in the “danger zone,” stating, “So 18% right now. If that’s not the bottom, we’d see a bottom around 20% or 22%. So it wouldn’t go much lower than this.”

With the Bitcoin halving event anticipated for later this month, navigating market volatility will be crucial for investors.

Also Read: Is Shiba Inu About To Get Dethroned? The Rise Of PEPE Coin

What’s Next: Benzinga’s upcoming Future of Digital Assets conference on Nov. 19 promises to be a valuable platform for in-depth discussions on Bitcoin’s future and the broader cryptocurrency landscape.

Industry experts will likely delve into technical analysis, market trends, and regulatory outlooks, offering insights to help investors make informed decisions.

Read Next: Bitcoin Spot ETFs Notch $113M Net Inflows On Wednesday, Grayscale Outflows Continue

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