In the wake of the Bitcoin halving in April, the cryptocurrency market has been abuzz with anticipation of a major price breakout for Bitcoin. Despite reaching a peak of $71,443 in the past week, Bitcoin faced a retracement, dropping to as low as $66,936. Renowned analyst Rekt Capital recently shared insights into the price movement since the halving, highlighting the significance of the “post-halving danger zone.”
According to Rekt Capital, after the halving event, Bitcoin entered a critical period where it lost approximately 11% of its value. Following this phase, Bitcoin attempted a breakout, only to be rejected at the $71,500 price region, which represents the high end of the macro re-accumulation range. This rejection is in line with historical norms, as Bitcoin rarely breaks through the upper boundary of the range on its first attempt post-halving.
The current price range that Bitcoin is trading within signifies a consolidation phase, where the cryptocurrency accrues value before potentially launching to new highs. Rekt Capital’s analysis suggests that Bitcoin will likely consolidate for several weeks until approximately 160 days post-halving, before experiencing a significant price breakout in September. During this period, Bitcoin is expected to trade between $60,000 and $70,000, leading to portfolio valuation fluctuations for long-term investors.
While the price consolidation may pose challenges for some investors, it also presents opportunities for strategic accumulation. Long-term investors can capitalize on buying Bitcoin near the lower boundary of the range, allowing them to accumulate at relatively stable prices over time. On the other hand, short-term traders, such as swing traders or day traders, can leverage the expected price fluctuations between established support and resistance levels to generate significant profits.
As of now, Bitcoin is trading at $68,720, reflecting a 2.27% gain in the last day, a 2.31% gain over the past week, and a 6.90% increase in the last month. However, the daily trading volume has dropped by 45.68%, now standing at $24 billion. Despite these gains, Bitcoin remains 6.94% below its all-time high of $73,750. The recent price surge, coupled with declining trading volume, suggests a cautious investor sentiment as Bitcoin consolidates within a narrow range, approaching significant resistance levels once again.
The future of Bitcoin remains uncertain yet hopeful, with analysts predicting a major price breakout in the coming months. Investors and traders alike need to closely monitor the market trends and be prepared to capitalize on the opportunities presented by Bitcoin’s price movements.
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