Bitcoin distribution ‘danger zone’ over, analysts say
Bitcoin’s BTCUSD price rose above the $65,000 mark on May 6 as analysts argued that the post-halving “danger zone” may be over, with more BTC upside on the way.
Bitcoin out of the post-halving “danger zone” — analyst
Bitcoin’s post-halving danger zone is a three-week window after the halving, historically associated with downside volatility occurring below the reaccumulation range.
With Bitcoin rising above the current reaccumulation range of approximately $60,000, the post-halving danger zone may be over, according to popular crypto analyst Rekt Capital. He wrote in a May 6 post:
During the 2016 bull cycle, Bitcoin produced an 11% downside wick 21 days after the halving, which marked the beginning of the price reversal, noted Rekt Capital in a May 6 X post:
Meanwhile, Bitcoin analyst Willy Woo also expects higher BTC prices based on the volume-weighted average price (VWAP), a popular oscillator used by traders to determine the average asset price based on price action and volume.
Woo wrote in a May 6 X post:
Further showcasing a change in investor sentiment, the Crypto Fear & Greed Index rose to 71/100, signaling “greed” — up from 43/100, or “fear,” on May 2.
Are Bitcoin’s long-term holders done selling?
Outflows from the 11 United States spot Bitcoin exchange-traded funds (ETFs) have contributed to Bitcoin’s correction. The U.S. ETFs recorded their highest week of outflows since launching, with nearly $900 million in net cumulative outflows over the past week, according to Dune data.
Related: Bitcoin enters ‘new era’ as whales scoop up over 47K BTC during price pullback
Interestingly, data suggests that long-term holders (LTH) at the $70,000 price have finished selling to new investors. Thus, a new active accumulation phase could be starting, according to CryptoQuant author Axel Adler Jr.’s May 6 X post.
This can significantly reduce Bitcoin’s sell pressure, paving the way toward a gradual climb to new highs, according to Eitan Katz, the founder of Kima, a decentralized money transfer protocol. Katz told Cointelegraph:
However, Bitcoin could remain subdued in the short term, due to concerns over inflation and dampened expectations for rate cuts, according to Mithil Thakore, CEO of Velar, a Bitcoin-native liquidity protocol. Thakore told Cointelegraph:
After the current short-term consolidation, Thakore expects Bitcoin price to reach $100,000 before the end of 2024. He said:
Related: ‘Mr. 100’ buys the Bitcoin dip for the first time since halving — Is the BTC bottom in?
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.