After the Bitcoin halving in April, there have been high expectations for a major price breakout in the cryptocurrency market. However, Bitcoin recently experienced a retracement, falling from its recent high of $71,443 to $66,936. This price movement has kept analysts and investors on the edge as they anticipate the next move for the leading cryptocurrency.
Insight from Renowned Analyst
Renowned analyst with X handle Rekt Capital has offered valuable insight into the recent price movement of Bitcoin. According to Rekt Capital, Bitcoin entered the “post-halving danger zone” after the halving event, causing the token to lose about 11% of its value. Despite attempts to break out, Bitcoin faced rejection at the range high zone of $71,500, which is a crucial level in the macro re-accumulation range.
The $71,500 price region represents a long-term consolidation phase for Bitcoin, where the cryptocurrency accumulates value before potentially breaking out to new highs. Rekt Capital explains that being rejected at this level is expected, as Bitcoin rarely breaks through the high side of the re-accumulation range on the first attempt after halving. Based on historical data, it is anticipated that Bitcoin will consolidate for several weeks until 160 days post-halving before experiencing a major price breakout in September.
Opportunities for Investors
During this consolidation phase, long-term investors have the opportunity to buy Bitcoin near the lower boundary of the range, allowing them to accumulate at stable prices. In contrast, short-term traders such as swing traders or day traders can capitalize on price fluctuations between established support and resistance levels, potentially leading to significant 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 of Bitcoin has dropped by 45.68%, now valued at $24 billion. Additionally, Bitcoin is currently 6.94% below its all-time high of $73,750. The recent price rise amidst declining trading volume indicates cautious investor sentiment as Bitcoin consolidates within a tight range, approaching significant resistance levels once again.
The future of Bitcoin post-halving remains uncertain, with analysts predicting a major price breakout in September. Whether you are a long-term investor looking to accumulate at stable prices or a short-term trader aiming for quick profits, it is essential to stay informed about the cryptocurrency market trends and make educated decisions based on expert analysis and price predictions.