Following Bitcoin’s halving in April, analysts and investors remain on the edge of their seats waiting for a major price breakout from the first cryptocurrency. While Bitcoin rose to $71,443 over the past week, the token soon underwent a retracement and fell to $66,936. Interestingly, renowned
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Bitcoin will consolidate for a long time – Analyst
In a series of X messages on May 24Rekt Capital noted that after the halving, Bitcoin entered the ‘post-halving danger zone’, a period in which the token lost around 11% of its value. After this phase, the most expensive cryptocurrency attempted a breakout but was met with rejection in the high zone ($71,500) of the macro reaccumulation range.
Since the Bitcoin Post-Halving “Danger Zone” ended, Bitcoin broke out to $71,500
However, ~$71,500 is where the Range High resistance of the Macro Re-Accumulation Range lies and this is where Bitcoin declined
Consolidation continues and history suggests it will… https://t.co/YjZzimnFj9 pic.twitter.com/JGji7ZYOSe
— Rekt Capital (@rektcapital) May 24, 2024
For context, this range represents a long-term consolidation phase where Bitcoin accumulates value before potentially reaching new highs. Rekt Capital states that a rejection of Bitcoin in the $71,500 price area is reasonable to expect as BTC never breaks through the high end of the reaccumulation range on the first attempt after halving.
Based on historical price data, Rekt Capital expects that Bitcoin will now remain in consolidation for several weeks up to 160 days after the halving, before finally experiencing its major price breakout in September. During this time, the leading cryptocurrency is expected to trade between $60,000 and $70,000, resulting in variations in portfolio valuation for long-term investors.
However, this price consolidation could also provide opportunities for these investors to purchase Bitcoin near the lower end of the range, allowing them to consistently accumulate at relatively stable prices. Meanwhile, short-term traders such as swing traders or day traders are likely to take advantage of these expected price swings between established support and resistance, which could lead to significant profits.
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BTC price overview
Bitcoin is currently trading at $68,720, marking a gain of 2.27% in the past day, a gain of 2.31% in the past week, and an increase of 6.90% in the past month. Despite these gains, daily trading volume is down 45.68%, now valued at $24 billion. BTC is also 6.94% below its all-time high of $73,750. The recent price surge amid declining trading volume signals cautious investor sentiment, with Bitcoin consolidating within a narrow range as the crypto market leader approaches significant resistance levels once again.
Featured image from The Economic Times, chart from Tradingview