After the Bitcoin halving in April, the cryptocurrency world was abuzz with anticipation of a major price breakout. Despite reaching highs of $71,443, the token soon experienced a retracement to $66,936. Renowned analyst Rekt Capital shared insights on this price movement, labeling it as the “post-halving danger zone.”
Rekt Capital pointed out that Bitcoin’s rejection at the $71,500 price region was expected, as historically, BTC does not break through the high side of the re-accumulation range on the first attempt post-halving. This range represents a long-term consolidation phase where Bitcoin accumulates value before potentially reaching new highs.
According to Rekt Capital, Bitcoin is likely to remain in consolidation for several weeks until 160 days post-halving. This period may see the premier cryptocurrency trade between $60,000 and $70,000, offering variations in portfolio valuation for long-term investors. Furthermore, price consolidation presents opportunities for investors to buy Bitcoin near the lower boundary of the range, leading to consistent accumulation at stable prices.
Short-term traders, such as swing traders or day traders, can capitalize on the expected price fluctuations between established support and resistance levels, potentially resulting in significant profit. Despite trading at $68,720, Bitcoin has seen a 2.27% gain in the last day, a 2.31% gain over the past week, and a 6.90% increase in the last month. However, its daily trading volume has dropped by 45.68%, now standing at $24 billion, and is 6.94% below its all-time high of $73,750.
The recent price rise, coupled with declining trading volume, suggests a cautious sentiment among investors. Bitcoin’s consolidation within a narrow range as it approaches significant resistance levels highlights the current state of the market.
While Bitcoin’s recent price movement has been intriguing, it is essential for investors and traders to remain vigilant and analyze the market trends carefully. Rekt Capital’s insights provide valuable information for understanding the dynamics of Bitcoin’s price action and potential trading opportunities. As the cryptocurrency market continues to evolve, staying informed and adaptable is key to making sound investment decisions.
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