Cryptocurrency analyst Rekt Capital has dropped a bizarre analysis about when Bitcoin might resume its upward trajectory. According to a post on the social media platform
This prediction came amid speculation about when and if Bitcoin will continue to rise in price as the current price action of the cryptocurrency shows. Ranges now Around the $68,000 price level.
Bitcoin is out of the danger zone: what does this mean?
Bitcoin has been subject to varying price predictions from different cryptocurrency analysts in the past few weeks, especially after the recent completion of the halving. While some analysts expect Price drop to As low as $52,000, Others are still bullish. Rekt Capital's latest predictions regarding the cryptocurrency place it in the last category of analysts who remain optimistic.
Rekt Capital's bullish forecast regarding Bitcoin seems very interesting, as he uses a strange term that he called the danger zone. His view of the danger zone is based on Bitcoin's price action in 2016. In his opinion, the cryptocurrency currently reflects its price action in 2016.
As he pointed out in the 1-week time frame chart of BTCUSD, Bitcoin was largely in a correction phase after the halving, which he called the re-accumulation range. However, Bitcoin created a wick extending below the low of the reaccumulation range just as it did in the three-week window after the halving in 2016.
This wick extension is particularly indicative of Bitcoin's breakout below the $60,000 price level early last week as it extended to the $56,000 price mark. According to him, this week’s extension means that Bitcoin has met the danger zone after the halving and could expire in just the next two days.
Bitcoin's downside has already been below the low reaccumulation range just like it did in 2016
Therefore, in terms of price, the purple “danger zone” has been met after the halving
However, in terms of time, the “danger zone” officially ends in two days$ Bitcoin #encryption #Bitcoin https://t.co/5GHCnZrmB1 pic.twitter.com/Qnx9zAevAy
— Rekt Capital (@rektcapital) May 11, 2024
There is no doubt that Bitcoin's breakout above this area means that it is now free of a strong movement towards the downside. From this point, all roads lead to higher prices if they continue to reflect the price action of 2016. Although Rekt Capital has not set a specific price target, its chart analysis suggests Bitcoin rising above $180,000, which represents 200% increase from the current price level.
Bitcoin is now trading at $60.926. Chart: TradingView
What's next for Bitcoin?
At the time of writing, Bitcoin is trading at $60,728 and is down 4.7% in the past seven days. Cryptocurrencies have not yet returned to the $70,000 price level Since early April. It seems as if The effect of supply and demand Halving has not yet been factored into the BTC price.
Historically, Bitcoin has seen price increases between six and nine months after the last halving. This means that the cryptocurrency could still continue to move quickly around $60,000 for some time, giving investors more time to accumulate. Before the strong rise in prices.
Featured image from www.projectmasam.com, chart from TradingView