Bitcoin, the trailblazing cryptocurrency, has kept analysts and investors on tenterhooks since the anticipated halving event in April. The bellwether digital currency’s journey saw it soaring to a notable peak of $71,443 within the past week, but this triumphant moment proved fleeting as Bitcoin underwent a sudden comedown, dropping to a sobering low of $66,936.
Unfazed by Bitcoin’s ebb and flow, the esteemed market analyst known only as ‘Rekt Capital’ has been sharing astute insights regarding Bitcoin’s intriguing price movements with an increased fervor. His keen-eyed observations seem to hint at a shred of optimism amid the rollercoaster world of cryptocurrency. At the heart of his deductions is the hint that a long-awaited bullish run for Bitcoin may be lurking on the horizon.
Rekt Capital delved deeper into his ideas on May 24 with a handful of tweets providing listeners with something to ponder about. He drew attention to Bitcoin’s course immediately following the halving event, a phase he referred to as the “post-halving danger zone”. This precarious period saw Bitcoin shedding around 11% of its value. Undeterred by the setback, the digital token attempted to rally, but was met with resistance in the range high zone ($71,500) of what he referred to as the macro re-accumulation range.
According to Rekt Capital, the resistance encountered by Bitcoin at $71,500, was well within the realm of expectation. After all, Bitcoin has seldom breached the high side of the re-accumulation range on its initial post-halving attempt.
He shed light on the re-accumulation range as a lengthy consolidation phase for the digital currency. During this interval, Bitcoin accrues in value, potentially setting itself up to shatter previous benchmarks.
Looking to historical price data for guidance, Rekt Capital predicts that Bitcoin will likely gird its loins within the consolidation phase for several weeks more, possibly for about 160 days post-halving. This places the much-anticipated price explosion in September. Throughout this lull, the Bitcoin behemoth is projected to dawdle between the $60,000 and $70,000 range. This wavering could mean some juggling for long-term investors as their portfolio valuations bob up and down.
However, every cloud has a silver lining. The consolidation phase may bear golden opportunities that savvy investors can seize. Investors can grab the chance to purchase Bitcoin near the lower boundaries, steadily accumulating at comparatively stable prices. Short-term traders, particularly swing traders or day traders, might profit considerably from the expected price fluctuations between the set reserves and resistance.
At present, Bitcoin trades at $68,720, becoming fatter by 2.27% within the last day, 2.31% in the past week, and an applaudable 6.90% over the last month. However, a disheartening 45.68% plunge in its daily trading volume to $24 billion has accompanied these gains. Bitcoin currently sits at a 6.94% discount from its zenith of $73,750.
As Bitcoin continues to hold its ground within a narrowed range, and despite the fall in trading volume, it’s evident that a cautious sentiment prevails amongst investors. As every eye watches the market leader navigate the roaring seas of cryptocurrency, the colossal resistance levels that loom on the horizon seem to hint at stormy waters ahead.
