Bitcoin emerges from post-halving slump, signals accumulation phase, suggests analyst

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Bitcoin (BTC) may have exited the post-halving “danger zone” and entered the accumulation phase, according to data shared by technical analyst Rekt Capital. It suggests that the selling pressure behind Bitcoin’s price is weakening.

After the halving event, Bitcoin typically goes through a “danger zone” characterized by increased volatility. In the 2016 cycle, Bitcoin’s value fell by almost 18% in the following three weeks.

This particular slowdown has returned in this halving cycle, albeit with a slight drop of 6.5% over the same period. However, this was briefly followed by a 15% increase, suggesting a strong exit from the “danger zone”.

At the time of reporting, Bitcoin was trading at nearly $62,600, marking a 3% increase in the last 24 hours. Rekt Capital notes that the $60,000 support level is crucial for the continuation of this upward trend, potentially leading to a return to the $68,000 mark.

“History suggests this means Bitcoin will no longer produce negative volatility below its current reaccumulation range,” Rekt Capital explained in its recent blog post. “Bitcoin’s correction should end and the price should be able to maintain above $60,000 going forward.”

While historical trends do not guarantee future results, the resilience of the current support level is a positive sign for Bitcoin’s trajectory.

What to expect next?

The big focus this week will be the Consumer Price Index (CPI) for April, which will be released on Wednesday. Forecasts for the CPI and core CPI are 3.4% and 3.6%, respectively.

The Federal Reserve (Fed) target is 2% and current data shows that inflation remains stubborn. Rates could remain high for a longer period unless inflation improves.

According to BitMEX founder Arthur Hayes, rising government debt and adjustments by the US Fed and Treasury are making alternative investments like Bitcoin more attractive. He predicts that the price of Bitcoin will exceed $60,000 and move into a period of relative stability between $60,000 and $70,000 by August.

The upcoming US presidential election could also influence the value of Bitcoin, according to Standard Chartered. The bank believes that a potential victory for Donald Trump could benefit the value of Bitcoin. Furthermore, the change in US fiscal and monetary policy is seen as potentially favorable to Bitcoin.

Standard Chartered expects BTC price will reach $150,000 by the end of the year and US$200,000 by 2025.

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