Bitcoin’s price surpassed $65,000 on May 6, leading experts to believe that the post-halving “danger zone” may be over and that there is potential for further upside in BTC.
The post-halving danger zone refers to the three-week period after the halving where downside volatility is typically observed below the reaccumulation range. However, with Bitcoin now above the current reaccumulation range of around $60,000, popular crypto analyst Rekt Capital suggests that the danger zone may be coming to an end.
During the 2016 bull cycle, Bitcoin experienced an 11% downside wick 21 days after the halving, which marked the beginning of a price reversal, according to Rekt Capital.
Another Bitcoin analyst, Willy Woo, also anticipates higher BTC prices based on the volume-weighted average price (VWAP), a popular oscillator used by traders to determine the average asset price based on price action and volume.
Furthermore, the increase in the Crypto Fear & Greed Index from 43/100 (fear) on May 2 to 71/100 (greed) suggests a change in investor sentiment towards Bitcoin.
On the other hand, outflows from the 11 United States spot Bitcoin exchange-traded funds (ETFs) have contributed to Bitcoin’s correction. These ETFs have recorded their largest week of outflows since their launch, with nearly $900 million in net cumulative outflows over the past week.
However, data indicates that long-term holders (LTH) who bought Bitcoin at $70,000 have stopped selling to new investors, potentially signaling the start of a new accumulation phase, according to CryptoQuant author Axel Adler Jr.
This reduction in sell pressure could pave the way for Bitcoin to gradually climb to new highs, according to Eitan Katz, the founder of Kima.
Nevertheless, Mithil Thakore, CEO of Velar, suggests that Bitcoin may remain subdued in the short term due to concerns about inflation and lowered expectations for rate cuts.
Despite short-term consolidation, Thakore expects Bitcoin’s price to reach $100,000 by the end of 2024.
It’s important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.