Rally

Parabolic

Bitcoin

Rekt (rektarb.xyz)

Rekt

Within the cryptocurrency world, Bitcoin’s price fluctuations can appear cryptic and volatile. Nevertheless, analysts can pinpoint specific stages in Bitcoin’s overall path by studying past patterns and trends on charts. One such analysis, conducted by Rekt Capital, <a rel="noopener noreferrer nofollow" href="https://twitter.com/rektcapital/status/1759894498438435035" target="_blank">sheds light</a> on the six key phases of Bitcoin’s macro diagonal. Let’s break them down:
<h2 class="p3" id="strong-span-class-s1-1-pre-halving-rally-span-strong">1. Pre-Halving Rally</h2>
Before a <a href="https://coingape.com/glossary/bitcoin-halving/" rel="noopener noreferrer nofollow">Bitcoin halving event</a>, there is usually a price increase called the Pre-Halving Rally. This phase usually happens around two months before the halving and is distinguished by a rise in Bitcoin’s price.&nbsp;
Historically, Bitcoin has encountered resistance at a macro diagonal line during this phase, but in the current cycle, it appears to be pushing beyond this resistance, potentially signaling a significant development in its price trajectory.
<h2 class="p3" id="span-class-s1-2-pre-halving-retrace-span">2. Pre-Halving Retrace:&nbsp;</h2>
Following the Pre-Halving Rally, Bitcoin often experiences a retracement phase in the <a href="https://coingape.com/halving/bitcoin-halving/" rel="noopener noreferrer nofollow">weeks leading up</a> to the halving event. A rejection from the macro diagonal resistance typically prompts this retracement. However, if Bitcoin manages to close above this resistance line, the retracement could serve as a retest of the line, potentially turning it into support.
<h2 id="strong-span-class-s1-3-macro-diagonal-rejection-span-span-class-s2-span-strong">3. Macro Diagonal Rejection:&nbsp;</h2>
Throughout Bitcoin’s history, it has frequently faced rejection from the macro diagonal resistance during the pre-halving period. This rejection has been a significant factor in shaping Bitcoin’s price movements, prompting retracements and consolidations. However, over time, the strength of this resistance tends to weaken.
<figure id="attachment_181787" aria-describedby="caption-attachment-181787" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-181787" src="https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-21-at-16.07.14.png" alt="6 Phases of The Bitcoin Macro Diagonal" width="1121" height="769" srcset="https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-21-at-16.07.14.png 1121w, https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-21-at-16.07.14-300x206.png 300w, https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-21-at-16.07.14-768x527.png 768w, https://coingape.com/wp-content/uploads/2024/02/Screenshot-2024-02-21-at-16.07.14-150x103.png 150w" sizes="(max-width: 1121px) 100vw, 1121px">
 <figcaption id="caption-attachment-181787" class="wp-caption-text">
 6 Phases of The Bitcoin Macro Diagonal
 </figcaption>
</figure>
<h2 class="p3" id="strong-span-class-s1-4-post-halving-re-accumulation-span-strong">4. Post-Halving Re-Accumulation:&nbsp;</h2>
Following the halving <a rel="noopener noreferrer nofollow" href="https://news.bitcoin.com/countdown-to-bitcoins-fourth-halving-a-shift-in-the-crypto-economy-looms/" target="_blank">event</a>, Bitcoin enters a phase of consolidation known as re-accumulation. Historically, this phase has taken place below the macro diagonal resistance. However, if Bitcoin closes above this resistance line, the re-accumulation phase could occur above it, potentially facilitating a retest of the macro diagonal.
<h2 class="p3" id="strong-span-class-s1-5-macro-diagonal-retest-span-strong">5. Macro Diagonal Retest:&nbsp;</h2>
The retest of the macro diagonal as new support typically occurs in the post-halving period. This retest is crucial as it sets the stage for Bitcoin to break out to new all-time highs. Historically, this breakout has occurred approximately 215 days after the halving event.
<h2 class="p3" id="strong-span-class-s1-6-post-halving-parabolic-upside-span-strong">6. Post-Halving Parabolic Upside:</h2>
Once the macro diagonal retest is successful, Bitcoin confirms an uptrend continuation and enters its most parabolic phase. Bitcoin experiences accelerated growth during this phase as it moves towards price discovery and achieves new all-time highs.
<h2 class="p3" id="span-class-s1-b-conclusion-b-span">Conclusion</h2>
These six <a href="https://coingape.com/blog/phases-of-bitcoin-halving/" rel="noopener noreferrer nofollow">phases can provide valuable insights</a> into Bitcoin’s price movement, for a better understanding of traders and investors. Identifying historical trends and patterns can help in making <a href="https://coingape.com/markets/5-crypto-to-buy-before-the-next-bitcoin-halving-in-2024/" rel="noopener noreferrer nofollow">well-informed decisions.</a> However, it is important to note that cryptocurrency markets are known for high volatility and they can be unpredictable. Therefore, the market cannot rely entirely on past indicators for future outcomes.
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The post <a href="https://coingape.com/blog/6-phases-of-the-bitcoin-macro-diagonal/" rel="noopener noreferrer nofollow">6 Phases of The Bitcoin Macro Diagonal</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

6 Phases of The Bitcoin Macro Diagonal

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