Analyst observes Bitcoin’s departure from the ‘danger zone’ based on historical cycle data

Bitcoin appears to have successfully navigated the post-halving “danger zone” and is now entering a phase of reaccumulation, according to a cryptocurrency analyst who referenced historical data. On May 13, the analyst known as “Rekt Capital” updated his Bitcoin market cycle chart on X, stating that the period of correction following the halving event is now over. Bitcoin has experienced a “good bounce” from the low support level of the reaccumulation range, the analyst added. Previous market cycles have seen similar “danger zones” before and after the halving event, during which the asset experiences a retreat. In this particular cycle, Bitcoin dropped 23% from its peak in mid-March to $56,800 on May 1, potentially marking the bottom of the post-halving danger zone. The analyst suggested that if $56,000 was not the bottom, then the current pullback would equal the longest retrace in this cycle at 63 days. However, based on historical patterns, the analyst believes that the pullback ended at $56,000 and lasted for 47 days. BTC has since recovered and is currently trading above $63,000, supporting the analysis that it has entered the reaccumulation zone again. It’s worth noting that past cycle movements do not always predict future ones, and there could still be further pullbacks during the period of sideways movement that often follows the halving. Nevertheless, the analyst remains confident that current support levels will hold. For Bitcoin to continue its upward trajectory, it is crucial that the support level remains intact, which could potentially lead to a move back to $68,000. In related news, global macro investor Raoul Pal recently noted that the summer and fall seasons will be driven by the global liquidity cycle, and cryptocurrencies tend to perform well during this period. Former BitMEX CEO Arthur Hayes also suggested that there will likely be a period of sideways trading and accumulation before markets start moving again in 2024, with an injection of liquidity from the Federal Reserve potentially flowing into riskier assets like cryptocurrencies.