Bitcoin Navigates Volatile Post-Halving Phase, Poised for Reaccumulation: Analysts Predict
Summary:
A crypto analyst, known as "Rekt Capital", forecasts that Bitcoin has moved past its post-halving volatile phase and is currently in a reaccumulation period. The analyst noted that Bitcoin's selling drive seems to be contrasting the $60,000 marker, hinting at the possibility of a potential increase to $68,000. These speculations align with previous patterns, although it's cautioned that historical trends don't always dictate future movements. Other finance experts have shared similar trends, forecasting stability before a surge in higher-risk assets like cryptocurrencies later in the year.
A cryptocurrency analyst predicts that Bitcoin (BTC) may have passed the volatile period following its recent "halving," and is now entering a phase of reaccumulation. On May 13th, "Rekt Capital," a cryptocurrency market analyst, updated his market cycle chart for Bitcoin, suggesting that the asset has successfully navigated through the perilous post-halving period. Celebrating a solid rebound from the low end of the reaccumulation range, Bitcoin has shown promising signs.
During previous market cycles, Bitcoin has tended to retreat both before and after a halving event, labeled as pre- and post-halving "danger zones". In the current cycle, Bitcoin declined 23% from its mid-March peak, bottoming out at $56,800 on May 1. This gave the possibility of the end of the post-halving risky period. If the asset doesn't fall below the $56,000 mark, it will mean this withdrawal has lasted as long, at 63 days, as the longest recorded in this cycle.
However, the pullback is likely to have finished at $56,000, lasting 47 days, according to Rekt Capital. Since then, Bitcoin has clawed back its losses and is trading over $63,000 at the time of drafting, endorsing the reaccumulation theory. It is important to note, past patterns may not always predict future movements, and additional drawback risks are expected in the typically volatile post-halving phase.
The analyst expressed optimism that the current support levels will sustain, pointing out that Bitcoin's selling momentum is easing up and appears to be stabilizing around the $60,000 mark. If the support holds, the crypto could potentially ascend to $68,000.
On May 13, founder of Global Macro Investor Raoul Pal, suggested that the "global liquidity cycle" drives fluctuations in the financial market. He argued that cryptocurrency performs remarkably well during, what he calls, a "banana zone" or the latter half of the year when high-risk assets tend to soar.
Earlier this month, Arthur Hayes, former CEO of BitMEX, shared the projection that Bitcoin will likely remain stable before resuming its upward trajectory later this year. Hayes reasoned that monetary policies of the Federal Reserve might channel more liquidity into riskier assets such as cryptocurrencies.
Published At
5/14/2024 6:03:23 AM
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