Bitcoin (BTC) may have escaped the ‘danger zone’ after the halving – and is now heading towards…
Bitcoin (BTC) may have escaped the “danger zone” after the halving – and is now on track to reaccumulate, according to a cryptocurrency analyst citing historical data.
On May 13, cryptocurrency market analyst Rekt Capital said: to publish Updated his Bitcoin market cycle chart on X announcing that the “danger zone” when the asset corrects after the halving event is now over.
He added that Bitcoin is celebrating “a nice bounce from the low support of the re-accumulation range.”
“Danger zone” periods before and after the halving have occurred in previous market cycles when the asset declines on either side of the halving event.
In this cycle, Bitcoin fell 23% from its peak price in mid-March to $56,800 on May 1, representing the potential bottom of the danger zone period after the halving.
analyst He added If $56,000 is not the bottom, “this current pullback will officially equal the longest pullback of this cycle at 63 days.”
However, history suggests that this current pullback ended at $56,000 and 47 days, he said.
BTC has now recovered to trade back above $63,000 at the time of writing, supporting a return to the reaccumulation zone analysis.
However, historical cycle movements do not always indicate future movements, and it is possible that there will be further pullbacks during the period of sideways cutting that often follows the halving.
However, the analyst was confident that current support levels would hold.
“Bitcoin is showing early signs of sell-side momentum slowing, slowly developing against support around $60,000.”
He added that this level needs to remain stable as it has been so far until it eventually rises again, which could lead to a return to $68,000.
Related: Bitcoin is “as strong as ever” with a record 200-day moving average
Meanwhile, in a letter dated May 13 to X, Global Macro Investor founder, Raoul Pal He said “The overall summer and fall are driven by the global liquidity cycle,” with cryptocurrencies performing particularly well in what he called “banana territory” in the latter half of the year when the prices of these high-risk assets rise.
Earlier this month, Arthur Hayes, former CEO of BitMEX, agreed that a period of sideways trading and accumulation would likely occur before markets start moving again later this year.
He also pointed to an infusion of liquidity from the Federal Reserve’s monetary policy that could make its way into riskier assets like cryptocurrencies.
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