Analyst examines historical cycle data and indicates Bitcoin’s departure from the ‘danger zone’

Bitcoin has successfully navigated the post-halving “danger zone” and is now entering a phase of reaccumulation, according to a crypto analyst who referenced historical data. On May 13, renowned market analyst “Rekt Capital” shared an update on Bitcoin’s market cycle chart on X, stating that the dangerous period following the halving event has come to an end. The analyst noted that Bitcoin has experienced a “good bounce” from the low support range of the reaccumulation phase. In previous market cycles, Bitcoin has encountered similar danger zones before and after the halving event, where the asset experiences volatility. In this current cycle, Bitcoin dropped by 23% from its peak in mid-March to $56,800 on May 1, which is potentially the bottom of the post-halving danger zone. The analyst suggested that if $56,000 proves to be the bottom, this pullback will be the longest in this cycle at 63 days. However, the analyst believes that the pullback ended at $56,000 and lasted for 47 days based on historical patterns. BTC has now recovered and is trading above $63,000, indicating a return to the reaccumulation zone. Nevertheless, it is important to note that past cycle movements may not always predict future ones, and further pullbacks could still occur during the sideways movement that typically follows the halving. Despite this, the analyst is confident that the current support levels will hold. In order for Bitcoin to rise again, this support level needs to remain intact, potentially leading to a move back to $68,000. In a separate statement, Global Macro Investor founder Raoul Pal discussed the macroeconomic factors driving the cryptocurrency market, suggesting that cryptocurrencies perform well in the latter half of the year during what he refers to as the “banana zone.” Former BitMEX CEO Arthur Hayes also concurred that a period of sideways trading and accumulation is likely to take place before the market starts moving again in 2024. Both Pal and Hayes highlighted the injection of liquidity from the Federal Reserve as a potential catalyst for increased investment in riskier assets such as cryptocurrencies.