Analyst predicts safer waters for Bitcoin based on historical cycle data
The "danger zone" is a term used to describe the three weeks following the halving event, which historically correlates with significant price fluctuations beneath a certain threshold.
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In a recent analysis based on historical cycle data, Bitcoin appears to have exited the post-halving "danger zone" and is now entering a reaccumulation phase. Following a 23% correction, crypto analyst Rekt Capital highlighted that Bitcoin may have reached a post-halving reaccumulation zone, indicating a positive shift in market sentiment.
On X (formerly Twitter), Rekt tweeted, “The Bitcoin Post-Halving "Danger Zone" is officially over.”
Bitcoin's value reached a significant milestone on May 6, peaking at $65,000 before briefly dipping to $63,712. This development has sparked optimism among analysts, who suggest that Bitcoin may have successfully navigated the volatile post-halving' danger zone,' hinting at the potential for further price increases.
The analyst drew parallels between Bitcoin price trends following the 2016 halving and recent movements, observing a notable 11% drop 21 days post-halving in 2016, which hinted at potential volatility. Similarly, in this cycle, there was a 6.5% decline about 14 days after the halving, aligning with expectations of short-term fluctuations. This analysis suggests that the so-called "Danger Zone" could soon conclude, with Bitcoin likely to start an upward trend if it stays above $60,600 by the end of this week.
After the latest halving, trading companies and financial analysts observed a stabilisation in Bitcoin price, suggesting that it has successfully navigated past the most unpredictable phase.
