After the recent Bitcoin halving in April, the cryptocurrency market has been eagerly waiting for a potential price breakout. Bitcoin did see a rise to $71,443, but it quickly retraced to $66,936. Renowned analyst Rekt Capital has provided insights into this price movement and predicted a potential bullish run for Bitcoin in the coming months.
According to Rekt Capital, Bitcoin entered the “post-halving danger zone” after the halving event, which led to a decline of about 11% in its value. Despite this initial setback, Bitcoin attempted to break out but faced resistance at the $71,500 range high zone of the macro re-accumulation range.
The $71,500 resistance level represents a critical point in Bitcoin’s long-term consolidation phase. Rekt Capital noted that it is not unusual for Bitcoin to be rejected at this level after a halving event. Based on historical data, Bitcoin is likely to remain in consolidation for several weeks before experiencing a major price breakout in September, approximately 160 days after the halving.
During this consolidation phase, long-term investors have the opportunity to accumulate Bitcoin at relatively stable prices by buying near the lower boundary of the range. On the other hand, short-term traders can capitalize on the expected price fluctuations between established support and resistance levels to make profits.
As of now, Bitcoin is trading at $68,720 with a 2.27% gain in the last day, a 2.31% gain over the past week, and a 6.90% increase in the last month. Despite these gains, the daily trading volume has decreased by 45.68%, indicating cautious investor sentiment. Bitcoin is still 6.94% below its all-time high of $73,750, suggesting that the cryptocurrency is consolidating within a narrow range as it approaches significant resistance levels.
The future of Bitcoin remains uncertain as it navigates through a consolidation phase post-halving. While long-term investors can take advantage of stable prices to accumulate Bitcoin, short-term traders should be prepared for price fluctuations. The prediction of a major price breakout in September presents both risks and opportunities for the cryptocurrency market. Investors and traders alike should closely monitor Bitcoin’s price movements and market trends to make informed decisions in the coming months.