Technical analyst Rekt Capital suggests that Bitcoin has emerged from the post-halving “danger zone” and entered an accumulation phase, as indicated by weakening selling pressure.
After previous halving events, Bitcoin typically experienced increased volatility, which came to be known as the “danger zone.”
In the current cycle, Bitcoin’s price dropped by a mild 6.5% over three weeks, followed by a 15% surge, signaling a strong exit from the danger zone.
“The Post-Halving Bitcoin “Danger Zone” (purple) is officially over,” popular crypto trader Rekt Capital wrote. “And Bitcoin is celebrating with a good bounce from the Re-Accumulation Range Low support.”
#BTC
The Post-Halving Bitcoin “Danger Zone” (purple) is officially over
And Bitcoin is celebrating with a good bounce from the Re-Accumulation Range Low support$BTC #Crypto #Bitcoin https://t.co/3pvWKRAqNd pic.twitter.com/KRD2UNDZiT
— Rekt Capital (@rektcapital) May 13, 2024
As of now, Bitcoin is trading at nearly $62,600, reflecting a 3% increase in the past 24 hours.
Bitcoin Price to Hold Above $60,000 Support
In a recent blog post, Rekt Capital emphasized the importance of the $60,000 support level for the continuation of the upward trend, with a potential return to the $68,000 mark.
“The Bitcoin correction should be over, and price should be able to maintain itself above $60,000 going forward.”
While past trends do not guarantee future outcomes, the resilience of the current support level is a positive indicator for Bitcoin’s trajectory.
Investors will closely monitor the April Consumer Price Index (CPI) release on Wednesday, which is forecasted to be 3.4% for CPI and 3.6% for core CPI.
Inflation remains a concern, as it exceeds the Federal Reserve’s target of 2%. Unless inflation improves, interest rates may remain high for an extended period.
Arthur Hayes, founder of BitMEX, believes that rising government debt and adjustments by the Fed and US Treasury make alternative investments like Bitcoin more appealing.
Hayes predicts that Bitcoin’s price will surpass $60,000 and stabilize between $60,000 and $70,000 by August.
The outcome of the upcoming US presidential election could also impact Bitcoin’s value, according to Standard Chartered.
The bank suggests that a potential win for Donald Trump might be beneficial for Bitcoin, considering potential shifts in fiscal and monetary policies.
Standard Chartered expects Bitcoin’s price to reach $150,000 by the end of the year and $200,000 by 2025.
Pantera Capital Bullish on Bitcoin
As reported, crypto hedge fund Pantera Capital has reiterated its bullish stance on Bitcoin. It predicts a potential surge in price to $114,000 by August 2025.
The forecast comes as the industry grapples with challenges such as inflation concerns, Federal Reserve interest rate policies, and the escalating Middle East crisis.
Utilizing a stock-to-flow model, Pantera assessed the supply of Bitcoin in relation to the rate of new production, which is designed to decrease by 50% every four years during halving events.
Historical data shows that Bitcoin’s price has experienced significant increases, sometimes up to 93-fold, in response to these events.
By studying both pre-halving and post-halving rallies, Pantera Capital determined that, on average, prices tend to reach their peak approximately 2.6 years after halving events.
Based on this analysis, the projected timeframe for Bitcoin’s potential surge aligns with August next year.
The post Bitcoin Enters Accumulation Phase, Exiting Post-Halving “Danger Zone,” Claims Analyst appeared first on Cryptonews.