Benzinga - by Bibhu Pattnaik, Benzinga Staff Writer.
On Friday, pseudonymous trader and crypto analyst Rekt Capital provided insights into Bitcoin's (CRYPTO: BTC) current status and prospects.
What Happened: The analyst said Bitcoin is no longer in the "danger zone" but warned of a possible 13% dip from its current value.
In a post on X, he said that Bitcoin could still experience a significant decline. He explained that Bitcoin typically enters the "danger zone" after a halving event, which reduces miners' rewards.
Following this phase, Bitcoin usually transitions into a "post-halving reaccumulation" period, characterized by sideways trading within a specific range. The analyst noted that Bitcoin had surged to $71,500 but faced resistance at this level, leading to ongoing consolidation.
#BTC“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,” he said in the post.Since the Bitcoin Post-Halving "Danger Zone" ended, Bitcoin broke out to $71500
However, ~$71500 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 suggest it will… https://t.co/YjZzimnFj9 pic.twitter.com/JGji7ZYOSe
— Rekt Capital (@rektcapital) May 24, 2024
Also Read: Crypto Analyst Foresees Upswing In Bitcoin's Value Before Major Plunge
In another post, Rekt Capital also highlighted that historically, Bitcoin has struggled to break out of the range high on its first attempt post-halving. He suggested that this reaccumulation phase might last until September 2024, with Bitcoin potentially breaking out only up to 160 days after the halving event.
#BTC“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," he said.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 breakout from these Re-Accumulation Ranges only up to 160 days after… https://t.co/Jw7FcQui2Q pic.twitter.com/beLdOPqZOi
— Rekt Capital (@rektcapital) May 24, 2024
Why It Matters: The potential for a 13% dip in Bitcoin's value comes amid broader bullish predictions for the cryptocurrency.
Last week, another analyst projected that Bitcoin could reach $1 million within the next 10 to 18 months, emphasizing that the market is still in the early stages of Bitcoin's growth story. This optimistic outlook underscores the cryptocurrency market's volatility and speculative nature, where significant short-term fluctuations can coexist with long-term bullish trends.
Now Read: Latest Bitcoin Halving Could Cost Miners Billions Of Dollars In Revenue: Report
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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