Crypto Analyst: Bitcoin No Longer in "Danger Zone"
A closely followed crypto analyst has indicated that Bitcoin (BTC) has exited the "danger zone," a period characterized by the potential for a dip below its range low. Pseudonymous trader Rekt Capital shared insights with his 472,200 followers on the social media platform, suggesting that while the danger zone has passed, Bitcoin could still experience a dip of approximately 13% from its current value.
Understanding the "Danger Zone"
Rekt Capital that Bitcoin is typically in the "danger zone" after a halving event, where miners' rewards are halved, often leading to a significant price decline. However, following this period, Bitcoin historically transitions into a "post-halving reaccumulation" phase, characterized by sideways trading within a range.
Recent Price Movements
The analyst highlighted recent price movements, stating, "Since the Bitcoin post-halving 'danger zone' ended, Bitcoin broke out to $71,500." However, he noted that this level coincides with the high resistance of the macro-re-accumulation range, leading to a rejection from this price point. As a result, Bitcoin's consolidation continues, with historical data suggesting it will persist for several more weeks within the range of $60,000 and $70,000.
Future Outlook and Potential Breakout
Looking ahead, the analyst suggested that Bitcoin may not break out of the range high of $70,000 until September, based on its historical presence. He explained, "Historically, Bitcoin has always rejected the range high on the first attempt at a breakout after the halving." Additionally, he emphasized that Bitcoin tends to break out from these reaccumulation ranges only up to 160 days after the halving, pointing towards a potential breakout occurring in September 2024.
