Key Points
- Bitcoin (BTC) may have moved past the post-halving "danger zone" and entered a phase of reaccumulation, suggests a crypto analyst.
- The analyst believes that Bitcoin's sell-side momentum is slowing down, indicating a potential move back to $68,000.
A crypto analyst, known as "Rekt Capital", has suggested that Bitcoin may have navigated beyond the perilous post-halving "danger zone" and is now in a phase of reaccumulation. This conclusion was drawn from an update to his Bitcoin market cycle chart.
Post-Halving Danger Zone
This "danger zone" refers to the period after a halving event when the asset typically corrects. In the current cycle, Bitcoin fell 23% from its peak price in mid-March to $56,800 on May 1, which may have marked the end of this danger zone period. If the bottom was not $56,000, the analyst suggests the current pullback would have equaled the longest retrace in this cycle at 63 days.
Bitcoin has since recovered, trading above $63,000, supporting the analyst's theory of a return to a reaccumulation zone. However, the analyst also noted that historical cycle movements don't always predict future ones and further pullbacks could still occur.
Future Bitcoin Movements
The analyst remains confident in the current support levels. "Bitcoin is showing early-stage signs of slowing down in its sell-side momentum, slowly developing a curl against the ~$60,000 support," he stated. This level needs to hold for Bitcoin to potentially move back to $68,000.
In a separate report, Global Macro Investor founder Raoul Pal suggested that the latter half of the year could see a surge in high-risk assets, including crypto. This is due to the "global liquidity cycle," a period when these assets perform exceptionally well.
Former BitMEX CEO Arthur Hayes agreed with this sentiment, suggesting that a period of sideways trading and accumulation is likely before markets start moving again later this year. He also hinted that an injection of liquidity from Federal Reserve monetary policy could flow into riskier assets like cryptocurrencies.
