As a seasoned crypto investor with several years of experience under my belt, I believe that Bitcoin’s price surge above $65,000 is a positive sign for the world’s largest cryptocurrency. The fact that popular analysts like Rekt Capital and Willy Woo are bullish on BTC based on historical trends and technical indicators gives me confidence in the long-term potential of Bitcoin.
The price of Bitcoin (BTC) surpassed $65,000 on May 6, according to analysts’ assessments. They believe that the potential risk area following the halving event might have passed, indicating further gains for Bitcoin.
Bitcoin out of the post-halving ‘danger zone’ – analyst
As a Bitcoin analyst, I’ve observed that the three-week period following a halving event can be considered a potentially volatile phase in Bitcoin’s price action. Historically, this “danger zone” has seen downward price movements falling outside the re-accumulation range.
As a crypto investor, I’ve been closely monitoring Bitcoin’s price movements, and I’m excited to share some insights from Rekt Capital, a well-known analyst in the community. According to him, with Bitcoin breaking above the current re-accumulation range around $60,000, we might have passed the post-halving danger zone. In his May 6 post, he expressed this idea: “The Bitcoin price has surpassed the key resistance area at $60,000. This could be a strong sign that the post-halving correction has ended.” So, let’s keep an eye on Bitcoin’s trend and see how it develops further.
“Time-wise the post-Halving “Danger Zone” will continue for the remainder of this week, to see out its third final week in this post-Halving window. However, price-wise the anticipated effect has already occurred.”
In the 2016 Bitcoin rally, there was a 11% price decrease 21 days following the halving event. This downward move signified the initiation of a price trend reversal, according to Rekt Capital’s analysis in their May 6 post.
“History did repeat because in this cycle Bitcoin produced a -6% downside wick below its respective Range Low in the 15 days after the Halving. Bitcoin has since rebounded strongly to the upside… The Bitcoin Post-Halving “Danger Zone” is over.”
Bitcoin expert Willy Woo holds the belief that Bitcoins price will increase, as indicated by the Volume-Weighted Average Price (VWAP) – a frequently utilized oscillator among traders for determining an assets average price through both price activity and trading volumes.
Woo wrote in a May 6 X post:
“Seems like a good setup for BTC to reach escape velocity. Bull divergence with lots of room to run.”
Demonstrating a shift in investor attitude, the Crypto Fear & Greed Index increased to 71 out of a possible 100, indicating “greed,” as opposed to the “fear” level of 43/100 recorded on May 2.
Are Bitcoin’s long-term holders done selling?
Bitcoin’s price correction can be attributed to significant withdrawals from Bitcoin-focused exchange-traded funds (ETFs) based in the United States. In the past week, these ETFs experienced their largest outflow since inception, totaling approximately $900 million as reported by Dune Analytics data.
It’s intriguing to note that data indicates long-term investors (LTI) at the $70,000 mark have likely exhausted their sales to newer buyers. This situation might imply the onset of a fresh accumulation phase based on CryptoQuant’s Axel Adler Jr.’s May 6 analysis.
According to Eitan Katz, founder of Kima, a decentralized money transfer protocol, this action could noticeably lessen the urge to sell Bitcoin. As a result, Bitcoin’s price might begin a steady ascent toward new peak levels, based on his perspective shared with CryptoMoon.
“The completion of distribution by long-term holders at the $70,000 mark could indeed alleviate some sell pressure in the market. This scenario might contribute to a more stable environment and provide new investors with a clearer path for growth.”
Mithil Thakore, CEO of Velar, a Bitcoin liquidity protocol, shared his perspective with CryptoMoon. He noted that Bitcoin might not show significant growth in the near future. This is possibly because investors are worried about inflation and have lowered their hopes for interest rate reductions.
“Last week’s decision by the Federal Reserve to maintain interest rates at two-decade highs, while signaling potential future reductions, adds complexity to the market landscape. Considering these factors, short-term consolidation below the previous all-time high is conceivable.”
As a researcher following Bitcoin’s market trends closely, I anticipate that the present price consolidation will only be temporary. By the close of 2024, I believe Bitcoin’s price will have surged past the $100,000 mark.
“The latter part of 2024 holds promise for Bitcoin. Anticipated interest rate reductions, renewed demand in ETFs, and advancements in Bitcoin Layer 2 solutions may fuel a resurgence, potentially propelling Bitcoin to new all-time highs and the coveted $100,000 milestone.”
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2024-05-06 21:44