According to recent data analysis by a prominent crypto expert, Bitcoin appears to have moved out of a risky phase following its latest halving event. Rekt Capital, a market analyst, displayed a Bitcoin market cycle chart on X on May 13, suggesting that Bitcoin has now entered a phase of accumulation. This comes after the digital asset corrected itself from the danger zone that often follows a halving event.
What is Bitcoin’s Current Status?
The analyst highlighted that Bitcoin experienced a notable rise from the lower support level within the re-accumulation range. Historically, Bitcoin tends to fall into a danger zone around halving events, characterized by price declines both before and after the event.
In this cycle, Bitcoin experienced a 23% drop from its peak price in mid-March, reaching $56,800 by May 1. This level potentially marks the bottom of the post-halving danger zone. If $56,000 is indeed the bottom, the recent 47-day pullback would be shorter than the longest historical pullback of 63 days during similar cycles.
Currently trading above $63,000, Bitcoin appears to be recovering. Although historical patterns are not guaranteed predictors of future movements, the analyst remains optimistic that the current support levels are stable, noting early signs of reduced selling momentum and a stabilization near the $60,000 support.
Insights from Industry Leaders
Raoul Pal, founder of Global Macro Investor, indicated on X that macroeconomic factors, driven by global liquidity cycles, could positively impact cryptocurrency performance during summer and fall. He emphasized that high-risk assets like cryptocurrencies historically perform well in the latter half of the year.
Former BitMEX CEO Arthur Hayes also concurred that a phase of horizontal trading and accumulation might precede market movements later this year. He mentioned that potential liquidity injections from Federal Reserve policies could flow into riskier assets such as cryptocurrencies.
Key Takeaways
– Bitcoin has exited a dangerous post-halving phase and is entering an accumulation phase.
– Historical patterns show that price drops around halving events are typical but not conclusive.
– Current support levels show signs of stability around $60,000, suggesting reduced selling pressure.
– Macro trends and liquidity cycles could favor cryptocurrency performance in the latter half of the year.
The views expressed by these analysts suggest cautious optimism for Bitcoin’s price stability and potential upward movement in the months following the halving event. However, as with all market analyses, these projections are subject to change based on numerous factors.
