đđđ Historical cycle data suggests Bitcoin has left the âdanger zoneâ â Analyst
A crypto analyst suggests that #bitcoin has moved past the post-halving "danger zone" and is now entering a phase of reaccumulation, drawing insights from historical data.
On May 13, market analyst "Rekt Capital" updated his Bitcoin market cycle chart on X, signaling the end of the "danger zone" following the halving event. He noted a "good bounce from the re-accumulation range low support," indicating positive momentum for Bitcoin.
Historically, Bitcoin experiences periods of correction before and after halving events, known as "danger zones." In this cycle, Bitcoin corrected by 23% from its peak in mid-March to $56,800 on May 1, potentially marking the end of the post-halving danger zone.
The analyst suggested that if $56,000 was indeed the bottom, the current pullback would equal the longest retrace in this cycle at 63 days. However, he expressed confidence that the current support levels would hold, indicating a potential move back to $68,000.
Although historical cycle movements aren't always predictive of future ones, the analyst observed signs of Bitcoin slowing down in its sell-side momentum, hinting at a possible upward trajectory.
In a separate commentary, Global Macro Investor founder Raoul Pal highlighted the importance of the global liquidity cycle in driving market movements, anticipating a surge in high-risk assets like cryptocurrencies in the latter half of the year.
Former #BitMEX CEO Arthur Hayes echoed similar sentiments, predicting a period of sideways trading and accumulation before markets pick up momentum later in 2024. He also pointed to the injection of liquidity from Federal Reserve monetary policy as a factor that could boost investments in #cryptocurrencies and other riskier assets.
Source - cointelegraph.com
