Bitcoin’s price surpassed $65,000 on May 6, with analysts suggesting that the post-halving “danger zone” is coming to an end and that there is potential for further upside in BTC.
According to popular crypto analyst Rekt Capital, the post-halving danger zone is a three-week period following the halving where downside volatility typically occurs below the reaccumulation range. However, with Bitcoin now rising above the current reaccumulation range of around $60,000, it is possible that the danger zone has concluded.
Rekt Capital noted that during the 2016 bull cycle, Bitcoin experienced an 11% downside wick 21 days after the halving, which marked the beginning of a price reversal.
Bitcoin analyst Willy Woo also predicts higher BTC prices based on the volume-weighted average price (VWAP), an oscillator commonly used by traders to determine the average asset price based on price action and volume.
In addition, the Crypto Fear & Greed Index rose to 71/100, indicating “greed,” which is an increase from the previous reading of 43/100, signaling “fear.”
The outflows from US spot Bitcoin exchange-traded funds (ETFs) have contributed to the correction in Bitcoin’s price. Dune data shows that the US ETFs experienced the highest week of outflows since their launch, with nearly $900 million in net cumulative outflows over the past week.
Interestingly, data suggests that long-term holders at the $70,000 price level have finished selling to new investors, indicating a potential new phase of active accumulation.
This reduction in sell pressure could pave the way for Bitcoin to gradually climb to new highs, according to Eitan Katz, the founder of Kima.
However, in the short term, Bitcoin may remain subdued due to concerns over inflation and dampened expectations for rate cuts, according to Mithil Thakore, CEO of Velar.
Despite this, Thakore expects the price of Bitcoin to reach $100,000 by the end of 2024.
It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.