Bitcoin exits post-halving dip, signals accumulation phase, suggests analyst

Bitcoin
(BTC)
may
have
exited
the
post-halving
“danger
zone”
and
entered
the
accumulation
phase,
according
to
data
shared
by
technical
analyst
Rekt
Capital.
He
suggests
that
the
selling
pressure
behind
Bitcoin’s
price
is
weakening.

#BTC

The
Post-Halving
Bitcoin “Danger
Zone”
(purple)
is
officially
over

And
Bitcoin
is
celebrating
with
a
good
bounce
from
the
Re-Accumulation
Range
Low
support$BTC

#Crypto

#Bitcoin

https://t.co/3pvWKRAqNd

pic.twitter.com/KRD2UNDZiT

—
Rekt
Capital
(@rektcapital)

May
13,
2024

Following
the
halving
event,
Bitcoin
typically
experiences
a
“danger
zone”
characterized
by
heightened
volatility.
In
the
2016
cycle,
Bitcoin’s
value
dropped
nearly
18%
in
the
three
weeks
that
followed.

This
specific
downturn
came
back
in
this
halving
cycle,
albeit
with
a
mild
6.5%
decline
over
the
same
period.
However,
this
was
briefly
followed
by
a
15%
surge,
suggesting
a
strong
exit
from
the
“danger
zone”.

At
the
time
of
reporting,
Bitcoin
is
trading
at
nearly
$62,600,
marking
a
3%
increase
in
the
last
24
hours.
Rekt
Capital
notes
that
the
$60,000
support
level
is
crucial
for
the
continuation
of
this
upward
trend,
potentially
leading
to
a
return
to
the
$68,000
mark.

“History
suggests
it
means
that
Bitcoin
will
no
longer
produce
downside
volatility
below
its
current
Re-Accumulation
Range,”
Rekt
Capital
explained
in
his
recent

blog
post.
“The
Bitcoin
correction
should
be
over
and
price
should
be
able
to
maintain
itself
above
$60,000
going
forward.”

While
historical
trends
do
not
guarantee
future
results,
the
current
support
level’s
resilience
is
a
positive
sign
for
Bitcoin’s
trajectory.

What
to
expect
next?

A
major
focus
this
week
will
be
the
April
Consumer
Price
Index
(CPI),
which
will
be
released
on
Wednesday.
Forecasts
for
the
CPI
and
core
CPI
are
3.4%
and
3.6%,
respectively.

The
Federal
Reserve’s
(Fed)
target
is
2%
and
current
data
shows
inflation
remains
stubborn.
Rates
might
stay
high
for
a
longer
period
unless
inflation
improves.

According
to
BitMEX
founder
Arthur
Hayes,
rising
government
debt
and
adjustments
by
the
Fed
and
US
Treasury
are
making
alternative
investments
like
Bitcoin
more
appealing.
He
predicts
that
Bitcoin’s
price
will
exceed
$60,000
and
move
to
a
period
of
relative
stability
between
$60,000
and
$70,000
by
August.

The
upcoming
US
presidential
election
could
also
influence
Bitcoin’s
value,
according
to
Standard
Chartered.
The
bank
believes
a
potential
win
for
Donald
Trump
could

benefit
Bitcoin’s
value.
Additionally,
the
US’s
fiscal
and
monetary
policy
shift
is
seen
as
potentially
favorable
for
Bitcoin.

Standard
Chartered
expects

BTC’s
price
to
reach
$150,000
by
year’s
end
and
$200,000
by
2025.