After Bitcoin's halving in April, analysts and investors remained on the edge of their seats in anticipation of a major price breakout by the number one cryptocurrency. While Bitcoin rose to $71,443 last week, the token quickly suffered a bounce as it fell to $66,936. Interestingly, popular analyst with the handle
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Bitcoin will be consolidated for a long time – Analyst
In a series of X Posts May 24Rekt Capital noted that after the halving event, Bitcoin entered the “post-halving danger zone,” a period in which the token lost about 11% of its value. After this point, the pricier cryptocurrency attempted a breakout that faced rejection at the high ($71,500) range area of the overall reaccumulation range.
Since the end of the post-halving “danger zone” in Bitcoin, Bitcoin has risen to $71,500
However, around $71,500 is where the high resistance band of the overall reaccumulation range is located, and this is where Bitcoin has rejected.
Unification continues and history indicates that it will continue… https://t.co/YjZzimnFj9 pic.twitter.com/JGji7ZYOSe
— Rekt Capital (@rektcapital) May 24, 2024
For context, this range represents a longer-term consolidation phase where Bitcoin is accumulating value before it reaches new highs. Rekt Capital states that Bitcoin rejection at the $71,500 price area is quite expected as BTC never breaks out to the high side of the reaccumulation range in the first attempt after the halving.
Based on historical price data, Rekt Capital expects Bitcoin will now remain in consolidation for several weeks up to 160 days after the halving before finally seeing a significant price breakout in September. During this time, the major cryptocurrency is expected to trade between $60,000 and $70,000, which will lead to differences in portfolio valuation for long-term investors.
However, this price consolidation can also provide opportunities for these investors to buy Bitcoin near the lower end of the range and thus continually accumulate at relatively stable prices. Meanwhile, short-term traders such as swing or day traders are likely to benefit from expected price fluctuations between established support and resistance which can lead to significant profits.
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Bitcoin price overview
Bitcoin is currently trading at $68,720, recording a 2.27% gain in the last day, a 2.31% gain over the past week, and a 6.90% gain in the past month. Despite these gains, daily trading volume fell by 45.68%, now reaching $24 billion. BTC is also 6.94% below its all-time high of $73,750. The recent rise in prices amid low trading volume indicates cautious investor sentiment, with Bitcoin consolidating within a narrow range as the cryptocurrency market leader once again approaches significant resistance levels.
Featured image from The Economic Times, chart from Tradingview
