Bitcoin
Historical cycle data suggests Bitcoin is out of the danger zone – is a return to $73,000 imminent? – TradingView News
ZyCrypto
Bitcoin has officially exited the post-halving “danger zone,” where there is the possibility of a drop below its low range, and is now heading toward reaccumulation, according to a popular crypto strategist citing historical data.
The price of Bitcoin has recently seen a pullback and currently hovers around $69,000 despite the eventual U.S. Securities and Exchange Commission (SEC) approval of several spot Ethereum exchange-traded funds (ETFs). With Bitcoin escaping the danger zone, will the prominent cryptocurrency resume its upward movement soon or is a deeper correction still likely?
Bitcoin sideways trading will continue for a few more weeks: analyst
On May 24, crypto trader and analyst Rekt Capital posted an update on X, noting that Bitcoin’s classic “danger zone” when the asset corrects after the quadrennial halving event is now behind it.
The post-halving danger zone has occurred in previous market cycles when the asset is corrected following a block subsidy halving, as per Rekt Capital. After the danger zone ends, Bitcoin historically enters a reaccumulation phase when it moves sideways within a narrow range. This suggests that further pullbacks during the sideways halving period that usually follows the halving could still be in play.
“Since Bitcoin’s post-halving ‘danger zone’ ended, Bitcoin has reached $71,500. However, ~$71,500 is where the high resistance of the macro reaccumulation range is and this is where Bitcoin is rejected,” wrote Rekt Capital. “Consolidation continues and history suggests it will continue for a few more weeks between $60,000 and $70,000.”
Rekt Capital further noted that based on historical behavior, Bitcoin will likely remain below $70,000 until September.
“Historically, Bitcoin has always rejected the high range on the first breakout attempt after the halving. Furthermore, history suggests that this reaccumulation is likely to last much longer. Bitcoin tends to break out of these reaccumulation bands only up to 160 days after the halving. This would translate into Bitcoin breaking out of the reaccumulation range only in September 2024.”
Bitcoin Price Overview
This cycle, Bitcoin has fallen more than 20% from its all-time high of $73,737 in mid-March to around $56,780 on May 1, marking the potential bottom of the post-halving danger zone period.
On May 21, the price of Bitcoin briefly surpassed the psychologically important $70,000 mark; however, it quickly dropped to around $67,000. BTC has now recovered and is trading at $69,176 at press time, reinforcing the return to the reaccumulation zone analysis.
Although the flagship crypto appears stuck in sideways price movements, industry experts remain extremely optimistic. For example, veteran crypto market commentator Tom Lee said his base case for Bitcoin by the end of the year is $150,000.