After the much-anticipated Bitcoin halving in April, the cryptocurrency market has been closely watching for signs of a major price breakout for Bitcoin. While there was a brief surge in price to $71,443 last week, Bitcoin soon experienced a retracement, dropping to as low as $66,936. Renowned analyst Rekt Capital has offered some interesting insights into this recent price movement and has also made predictions regarding when Bitcoin may see a significant bullish run.
Rekt Capital’s analysis indicates that following the halving event, Bitcoin entered what he calls the “post-halving danger zone.” During this period, Bitcoin saw a decrease in value of about 11%. Despite this, Bitcoin attempted a breakout after this phase, reaching as high as $71,500, but ultimately faced rejection at this range high zone. This range represents a macro re-accumulation phase where Bitcoin consolidates value before potentially breaking out to new highs.
Based on historical data, Rekt Capital anticipates that Bitcoin will likely remain in a consolidation phase for several weeks, until approximately 160 days post-halving. It is during this period that Bitcoin is expected to trade within the range of $60,000 to $70,000, leading to fluctuations in portfolio valuation for long-term investors. However, this consolidation phase can also present opportunities for investors to buy Bitcoin at lower prices, consistently accumulating at relatively stable levels.
While long-term investors may benefit from buying near the lower boundary of the price range, short-term traders, such as swing traders or day traders, could take advantage of the expected price fluctuations between established support and resistance levels. Bitcoin’s current trading price is $68,720, with gains of 2.27% in the last day, 2.31% over the past week, and a 6.90% increase in the last month. Despite these gains, Bitcoin’s daily trading volume has dropped by 45.68%, now at $24 billion and still 6.94% below its all-time high of $73,750.
The recent price surge accompanied by a decline in trading volume suggests a cautious sentiment among investors. Bitcoin is currently consolidating within a narrow range as it approaches significant resistance levels once again. This caution could indicate uncertainty in the market as investors await further developments in Bitcoin’s price movement.
The Bitcoin market post-halving continues to be closely monitored by analysts and investors alike. While volatility remains a key characteristic of the cryptocurrency market, historical data and expert analysis offer valuable insights into potential price movements and trading opportunities. As Bitcoin navigates through its consolidation phase, both long-term investors and short-term traders may find opportunities to capitalize on price fluctuations and accumulate positions strategically.
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