A closely followed crypto analyst says that Bitcoin (BTC) is no longer in the “danger zone,” when there is a likelihood of a dip below its range low.
Pseudonymous trader Rekt Capital tells his 472,200 followers on the social media platform X that while the “danger zone” has passed, Bitcoin could still dip about 13% from its current value.
Based on past cycles, Bitcoin enters the “danger zone” after a halving event, when miners’ rewards are halved, and declines significantly, according to the analyst. After the “danger zone,” Bitcoin historically enters a “post-halving reaccumulation” phase when it trades sideways within a 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 is and this is where Bitcoin rejected from. The consolidation continues and history suggests it will continue for several more weeks between $60,000 and $70,000.”
The analyst also says that based on historical precedence, Bitcoin may not break out of the range high of $70,000 until September.
“Historically, Bitcoin has always rejected from the range high on the first attempt at a breakout after the halving. Moreover, history suggests this re-accumulation should last much longer. Bitcoin tends to break out from these re-accumulation ranges only up to 160 days after the halving. That would translate to a Bitcoin breakout from the re-accumulation range only in September 2024.”
Bitcoin is trading for $69,012 at time of writing, up 2% in the last 24 hours.
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