Bitcoin’s price surpassed the $65,000 mark on May 6, indicating that the post-halving “danger zone” may be behind us and more upward movement for BTC is on the horizon, according to analysts.
The post-halving danger zone refers to a three-week period after the halving event, during which downside volatility typically occurs below the reaccumulation range. However, with Bitcoin now surpassing the current reaccumulation range of around $60,000, popular crypto analyst Rekt Capital believes that the danger zone may be over.
Rekt Capital noted that during the 2016 bull cycle, Bitcoin experienced an 11% downside wick 21 days after the halving, which marked the beginning of a price reversal.
Another Bitcoin analyst, Willy Woo, also anticipates higher BTC prices based on the volume-weighted average price (VWAP), an oscillator commonly used by traders to determine the average asset price based on price action and volume.
Furthermore, the Crypto Fear & Greed Index, which measures investor sentiment, rose to 71/100, indicating “greed,” compared to 43/100, indicating “fear,” on May 2. This further demonstrates a shift in investor sentiment towards optimism.
On the other hand, outflows from US spot Bitcoin exchange-traded funds (ETFs) have contributed to Bitcoin’s recent correction. These ETFs witnessed their highest week of outflows since their launch, with nearly $900 million in net cumulative outflows over the past week, according to Dune data.
Interestingly, data suggests that long-term holders (LTH) who bought Bitcoin at the $70,000 price point have finished selling to new investors. This suggests the start of a new active accumulation phase, which could significantly reduce sell pressure and potentially lead to a gradual climb to new all-time highs.
However, in the short term, Bitcoin may remain subdued due to concerns regarding inflation and dampened expectations for rate cuts, according to Mithil Thakore, CEO of Velar, a Bitcoin-native liquidity protocol.
Despite this, Thakore predicts that after the current consolidation phase, Bitcoin’s price could reach $100,000 by the end of 2024.
It’s important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any investment decisions.