After the highly anticipated Bitcoin halving in April, investors and analysts have been closely monitoring the price movement of the leading cryptocurrency. Recent data indicates that Bitcoin reached a peak of $71,443 before experiencing a retracement to as low as $66,936. This price action has left many wondering about the next potential direction for Bitcoin’s price.
Renowned analyst, Rekt Capital, has offered valuable insights into the recent price movement of Bitcoin. According to a series of posts on May 24, Rekt Capital highlighted that Bitcoin entered the “post-halving danger zone” after the halving event, resulting in an 11% loss in its value. Subsequently, Bitcoin attempted a breakout but faced rejection at the range high zone of $71,500 within the macro re-accumulation range.
The re-accumulation range is regarded as a long-term consolidation phase where Bitcoin accumulates value before potentially breaking out to new highs. Rekt Capital predicts that Bitcoin’s rejection at $71,500 is expected, as historical data suggests that BTC rarely breaks through the high side of the re-accumulation range on the first attempt post-halving. The analyst anticipates that Bitcoin will consolidate for several weeks until 160 days after the halving event, potentially leading to a major price breakout in September.
Opportunities for Investors and Traders
During this consolidation period, long-term investors may have the opportunity to buy Bitcoin near the lower boundary of the range, enabling them to accumulate the asset at stable prices. On the other hand, short-term traders, such as swing traders or day traders, can capitalize on the expected price fluctuations between established support and resistance levels, potentially yielding significant profits.
As of now, Bitcoin is trading at $68,720, reflecting 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. Despite these gains, Bitcoin’s daily trading volume has decreased by 45.68%, currently valued at $24 billion. Furthermore, BTC remains 6.94% below its all-time high of $73,750. The recent price increase amidst declining trading volume suggests a sense of caution among investors. Bitcoin is consolidating within a tight range as it approaches significant resistance levels once again.
The analysis of Bitcoin’s post-halving price movement indicates a period of consolidation and potential breakout in the coming months. Investors and traders alike should closely monitor the market trends and leverage the opportunities presented by the price fluctuations to make informed investment decisions.
