Two days before the completion of the bitcoin (BTC) halving, the digital currency is trading at key prices for investors, according to specialists. The analyst known as Rekt Capital remembered that any decline in bitcoin in the period prior to the halving represented buying opportunities. To put in perspective, in the last twelve months alone, The currency appreciated more than 140% despite momentary setbacks. And, according to the specialist, the current price is still «a bargain.» He maintains that bitcoin will continue trading within a consolidation range for a few weeks before continuing to rise, as it has historically done before the halving. This can be seen in the following graph.
Phases that the bitcoin market has historically gone through before the halving. Source: Rekt Capital. “Going forward, this upcoming multi-week consolidation will represent a bargain buying opportunity,” he maintains. These comments take place while bitcoin is trading around USD 65,000, an area in which it has lateralized for a good part of the last month after reaching the all-time high (ATH) of USD 73,700. In this way, it shows strength from the decline it experienced hours before the halving to USD 59,600, as seen below. Rekt Capital suggests In addition, the market may have already shown the top and bottom of the post-halving reaccumulation phase that has historically occurred. If this is so, he warns that “prices within this range would be the best we can get before bitcoin is finally ready.”
The price of bitcoin always experienced a significant rise months after the halving, as shown in the following BitcoinDynamic post. In part, this is because such an event reduces the issuance of the currency by half, limiting the supply in the market by miners. This, in the long term, generates bullish expectations in investors and a feeling of scarcity as less and less bitcoin is produced when a block is mined. https://www.instagram.com/p/C58vGDhM0-f/
The MVRV indicator predicts a buying opportunity
In tune with the historical behavior of bitcoin before the halving, technical analyst Ali Martínez stood out that the MVRV index predicts a rise for the currency. This metric measures the relationship between the market capitalization and the acquisition cost of each coin. “Every time bitcoin's MVRV index falls below its 90-day average since November 2022 [el fondo del mercado], indicates an excellent purchasing opportunity with an average gain of 67%,” he mentioned. This can be seen below.
In orange you can see the price of bitcoin and in light blue the MVRV index. Source: Ali Martínez. “This opportunity is upon us again, indicating that it could be the perfect time to buy BTC,” he concluded.