- Bitcoin is showing signs of bullishness and exiting the post-halving ‘danger zone’.
- Strong support around $60,000 suggests upside momentum could resume.
Bitcoin [BTC]the leading cryptocurrency, has recently shown mild bullish signs, pushing its trading price above $63,000 before settling at around $62,013.
This move signaled a tentative recovery from previous lows and a possible shift in market dynamics.
An end to Bitcoin’s riskiest phase?
Crypto market analyst Rekt Capital recently marked that Bitcoin may have gone through its most dangerous post-halving phase, a period typically characterized by significant corrections.
According to historical data, such “danger zones” are often followed by phases of reaccumulation, and Bitcoin’s recent rebound from key support levels could indicate the beginning of this trend.
Bitcoin’s trajectory post-halving has been volatile. After peaking in mid-March, the cryptocurrency fell 23%, reaching a low of $56,800 on May 1.
This price point could potentially represent the low point of the post-halving recession, which would mark a pivotal moment for investors and traders alike.
Rekt Capital noted,
“If $56,000 was not the low, this current pullback will have officially equaled the longest pullback in this cycle at 63 days. However, history suggests that this current pullback ended at $56,000 and 47 days.”
This observation was consistent with the recent recovery in assets to over $63,000 yesterday, signaling a return to a reaccumulation phase.
Future projections and technical insights
While historical trends provide a roadmap, they do not guarantee future results. Market fluctuations and sideways movements are still possible. Yet RektCapital noted,
“Bitcoin is showing early signs of slowing momentum on the sell side, slowly developing a curl off the ~$60,000 support.”
For a sustainable recovery, this support must continue. If successful, Bitcoin could target a return to higher levels, possibly as high as $68,000.
This projection is supported by technical analyzes and current market sentiment.
Source: RektCapital/X
Santiment, a leading analytics platform, has done just that noticed a rise in Bitcoin funding rates on exchanges such as DyDx and Deribit.
This rise could be a double-edged sword, indicating growing interest but also the risk of repeating previous market tops.
Santiment disclosed that to avoid a repeat of last week’s downturn, it is crucial that bullish momentum is moderate, with an equal or higher number of short positions compared to long positions.
Source: Santiment
Read Bitcoin’s [BTC] Price forecast 2024-25
On the technical front, Bitcoin’s daily chart suggested short-term bearish pressure due to recent lower lows.
However, a zoom in on the 30-minute chart shows Bitcoin utilizing liquidity in the $63,000 region, indicating a potential near-term sell-off towards the $60,000 swing low before a major bullish reversal occurs.
Source: TradingView