After Bitcoin’s April halving, analysts and investors remain anxious in anticipation of a major price break by the virgin cryptocurrency. While Bitcoin actually rose to $71,443 last week, the token soon suffered a retracement, falling all the way to $66,936. Interestingly, a renowned analyst with advisory X Rekt Capital provided some fascinating insight into this recent price movement and also predicted the period where BTC could finally start its long-awaited bull run.
Bitcoin Consolidates for a Long Time – Analyst
In the series X posts from May 24Rekt Capital noted that after the halving, Bitcoin entered the “post-halving danger zone”, a period in which the token lost approximately 11% of its value. After this phase, the most exorbitant cryptocurrency attempted a breakout, which was met with a rejection in the upper zone of the macro accumulation range ($71,500).
Since Bitcoin’s post-halving “danger zone” ended, Bitcoin has broken out to $71,500
However, ~$71,500 is where the high resistance of the macro reaccumulation range lies and this is where Bitcoin is rejected from
Consolidation continues and history suggests that… https://t.co/YjZzimnFj9 pic.twitter.com/JGji7ZYOSe
— Rekt Capital (@rektcapital) May 24, 2024
For context, this range represents a long-term consolidation phase where Bitcoin accumulates value before potentially breaking out to novel highs. Rekt Capital claims that Bitcoin’s rejection in the $71,500 price region is quite expected as BTC never breaks the upper side of the re-accumulation range on the first attempt after halving.
Based on historical price data, Rekt Capital predicts that Bitcoin will now remain in consolidation for many weeks, up to 160 days after the halving, before finally experiencing a major price breakout in September. During this time, the price of the main cryptocurrency is expected to be between $60,000 and $70,000, which will create a difference in portfolio valuation for long-term investors.
However, this price consolidation could also create opportunities for these investors to purchase Bitcoins near the lower end of the range and thus consistently accumulate them at relatively stable prices. Meanwhile, short-term traders such as swing traders or day traders are likely to take advantage of these expected price swings between established support and resistance, which could result in significant profits.
BTC price overview
Bitcoin is currently trading at $68,720, up 2.27% over the past day, up 2.31% over the past week, and up 6.90% over the past month. Despite these increases, daily trading volume dropped by 45.68% and now stands at $24 billion. BTC is also 6.94% below its all-time high of $73,750. The recent price rally amid falling trading volume suggests cautious investor sentiment, with Bitcoin consolidating in a narrow range as the cryptocurrency market leader once again approaches significant resistance levels.
Featured image from The Economic Times, chart from Tradingview
