Bitcoin has been struggling to regain its recent all-time high of $73,737 amid sustained selling pressure—can the bulls finally reverse the trend?

Bitcoin has officially entered a pre-halving "danger zone," a period where its price historically dips before the halving event, according to pseudonymous analyst Rekt Capital. With the fourth halving just 26 days away, Bitcoin might be experiencing a typical pre-halving retracement.

Rekt Capital, who has 434.3K followers on X, highlighted that Bitcoin is now in a "danger zone" where it historically drops between 20% and 40% before the halving. He noted, "It's been two days since Bitcoin entered the 'danger zone' (orange), where historical pre-halving retraces have started. Historically, these retraces occur 14-28 days before the halving. Currently, BTC is about 26 days away from the halving and has pulled back almost 18% since last week."

As of now, Bitcoin is priced just above $63,500, having lost 2.5% in the past day, according to CoinGecko data.

Rekt Capital is uncertain if Bitcoin has hit its bottom yet, but he believes BTC is within the "danger zone time window," suggesting potential further downside before the April halving event. He expects Bitcoin's price could drop to the $40,000-42,000 range before the halving.

The halving event, which reduces the rate at which new Bitcoin is rewarded to miners by half, has occurred three times since Bitcoin's inception in January 2009.

Despite the potential for a near-term price drop, Rekt Capital remains bullish on Bitcoin. He noted that BTC tends to reach a bull market top roughly 266-315 days after surpassing its previous all-time high. With a new high set last week, the next bull market peak could occur between late November 2024 and late January 2025. However, he points out that Bitcoin has been taking longer to hit new peaks each cycle, which could push the peak of this bull run to December this year or mid-February 2025.