Emergence from the “Danger Zone”
Technical analyst Rekt Capital has pointed out a significant shift in Bitcoin’s trajectory, mentioning that it has moved past the post-halving “danger zone” and entered an accumulation phase. This transition is evident in the weakening selling pressure that Bitcoin is currently experiencing.
After the previous halving events, Bitcoin usually faced heightened volatility, a period often referred to as the “danger zone.” However, in the current cycle, Bitcoin saw a modest 6.5% decline over three weeks, followed by a robust 15% surge. Rekt Capital noted, “The Post-Halving Bitcoin ‘Danger Zone’ (purple) is officially over,” signaling a positive turn of events for the cryptocurrency.
“And Bitcoin is celebrating with a good bounce from the Re-Accumulation Range Low support.” – Rekt Capital
Currently, Bitcoin is trading at nearly $62,600, exhibiting a 3% increase in the last 24 hours.
Expert Predictions and Market Analysis
In a recent blog post, Rekt Capital emphasized the critical role of the $60,000 support level in sustaining the upward momentum, with the potential of revisiting the $68,000 mark. Rekt Capital stated, “The Bitcoin correction should be over, and price should be able to maintain itself above $60,000 going forward.”
Investors are keeping a close watch on the upcoming April Consumer Price Index (CPI) release, projected at 3.4% for CPI and 3.6% for core CPI. Concerns regarding inflation persist, surpassing the Federal Reserve’s target of 2%. The prevailing support level serves as a positive indicator for Bitcoin’s future trajectory, despite historical trends not guaranteeing future outcomes.
Arthur Hayes, the founder of BitMEX, commented on the attractiveness of alternative investments like Bitcoin amidst rising government debt and monetary policy adjustments. Hayes anticipates Bitcoin’s price to exceed $60,000 and stabilize between $60,000 and $70,000 by August.
Standard Chartered highlighted the potential impact of the upcoming US presidential election on Bitcoin’s value. The bank suggests that a victory for Donald Trump could benefit Bitcoin due to potential changes in fiscal and monetary policies. The bank projects Bitcoin to hit $150,000 by the year-end and $200,000 by 2025.
Crypto hedge fund Pantera Capital has reiterated its optimistic outlook on Bitcoin, projecting a price surge to $114,000 by August 2025. Pantera’s assessment considers various challenges faced by the industry, including inflation concerns, Federal Reserve policies, and geopolitical tensions in the Middle East.
By utilizing a stock-to-flow model, Pantera analyzed Bitcoin’s supply dynamics in comparison to the rate of new coin generation. Historical data suggests that Bitcoin’s price has seen substantial growth, with spikes up to 93 times, following halving events. Pantera Capital’s analysis indicates that prices typically peak around 2.6 years after halving events, aligning with a potential surge in August next year.
