In the aftermath of the Bitcoin halving event in April, the cryptocurrency market has been closely monitoring the price action of Bitcoin, the pioneer digital asset. The recent price movement saw Bitcoin reaching a high of $71,443 before retracing to $66,936. This price volatility has sparked discussions among analysts and investors about the potential for a major breakout in the near future.
Renowned analyst Rekt Capital has provided valuable insights into the recent price movements of Bitcoin. According to a series of posts on May 24, Rekt Capital mentioned that Bitcoin entered the “post-halving danger zone” after the halving event, resulting in a loss of approximately 11% of its value. Despite this retracement, Bitcoin attempted a breakout but faced rejection at the $71,500 range high, indicating strong resistance.
Rekt Capital emphasized that the $71,500 price region represents a critical level in the long-term consolidation phase for Bitcoin. Historically, Bitcoin tends to face rejection at the high side of the re-accumulation range on the first attempt after a halving event. Based on these factors, Rekt Capital predicts that Bitcoin will undergo consolidation for multiple weeks until 160 days post-halving, before eventually experiencing a major price breakout in September.
For long-term investors, the current price consolidation phase presents an opportunity to accumulate Bitcoin at stable prices near the lower boundary of the range. This consistent accumulation strategy can potentially lead to significant gains once Bitcoin breaks out to new highs. On the other hand, short-term traders such as swing traders or day traders can capitalize on the expected price fluctuations between established support and resistance levels to generate profits.
As of now, Bitcoin is trading at $68,720, reflecting a 2.27% gain in the last day. Over the past week, Bitcoin has recorded a 2.31% gain and a 6.90% increase in the last month. Despite these gains, the daily trading volume for Bitcoin has declined by 45.68%, standing at $24 billion. Additionally, Bitcoin is currently 6.94% below its all-time high of $73,750. The recent price surge coupled with decreasing trading volume suggests a cautious investor sentiment in the market.
The cryptocurrency community is eagerly awaiting the next move for Bitcoin as it navigates through a crucial consolidation phase. With expert analysis and price forecasts pointing towards a potential breakout in the coming months, investors and traders alike are preparing for the next wave of volatility in the Bitcoin market.