Crypto analyst Rekt Capital has released a peculiar analysis on when Bitcoin might resume its upward trajectory. According to a post by a popular analyst on social media platform X, Bitcoin may finally leave the “danger zone” in the next two days.
This prediction comes amid speculation about when and if Bitcoin will continue its price surge, as current price action shows that the cryptocurrency now he hesitates around the $68,000 price level.
Bitcoin Leaves the Danger Zone: What Does This Mean?
Over the past few weeks, Bitcoin has been the subject of various price predictions from various cryptocurrency analysts, especially after the recent halving. Although some analysts predict price drop to starting from $52,000, others are still bullish. Rekt Capital’s recent cryptocurrency outlook puts it among the second category of analysts to remain bullish.
Rekt Capital’s bullish predictions for Bitcoin seem very intriguing because he uses a peculiar term that he calls the danger zone. His view of the danger zone is based on Bitcoin’s price action in 2016. In his opinion, the cryptocurrency currently reflects the price movement in 2016.
As he noted on the BTCUSD weekly time chart, Bitcoin is largely in a post-halving correction phase, which he called the re-accumulation range. However, Bitcoin created a wick that reached below the low of the reaccumulation range, similar to what happened in the three-week post-halving window in 2016.
This extension of the wick specifically refers to Bitcoin’s break below the $60,000 price level early last week, when it reached a price of $56,000. According to him, this week’s extension means that Bitcoin has met the post-halving danger zone and may end within the next two days.
Bitcoin is indeed disadvantaged below the bottom of the reaccumulation range, similar to 2016
So, in terms of price, the purple “danger zone” after the halving has been met
However, in terms of time, “Danger Zone” officially ends in 2 days$BTC #Crypt #Bitcoin https://t.co/5GHCnZrmB1 pic.twitter.com/Qnx9zAevAy
— Rekt Capital (@rektcapital) May 11, 2024
Undoubtedly, Bitcoin’s breakout above this zone means that it is now free from a sturdy downward move. From here, all roads lead to price increases if it continues to reflect 2016’s price action. While Rekt Capital did not provide a specific price target, its chart analysis indicates that Bitcoin has risen above $180,000, representing a 200% escalate from the current price level.
Bitcoin is now trading at $60.926. Chart: TradingView
What’s next for Bitcoin?
At the time of writing, Bitcoin is trading at $60,728 and is down 4.7% over the last seven days. The cryptocurrency has not yet returned to the $70,000 price level from the beginning of April. It seems that supply and demand effect halving has not yet been included in the BTC price.
Historically, Bitcoin has experienced price increases six to nine months after previous halvings. This means the cryptocurrency could continue to hover around $60,000 for some time, giving investors more time to accumulate before a sturdy price escalate.
Featured image from www.projectmasam.com, chart from TradingView
