After the Bitcoin halving in April, the cryptocurrency market has been closely watching for signs of a significant price breakout by Bitcoin, the leading cryptocurrency. While there was a brief rise to $71,443, the price soon retraced to $66,936, causing uncertainty among analysts and investors. Renowned analyst Rekt Capital provided some insights into this price movement and offered a prediction for when Bitcoin might embark on a bullish run.
Rekt Capital highlighted the period after the halving event as the “post-halving danger zone,” during which Bitcoin faced a loss of about 11% of its value. Following this phase, Bitcoin attempted a breakout but was rejected at the range high zone of $71,500, which represents the macro re-accumulation range. This range is crucial as it signifies a long-term consolidation phase for Bitcoin before a potential breakout to new highs.
According to historical price data, Rekt Capital expects Bitcoin to consolidate for several weeks until 160 days post-halving, with a major price breakout anticipated in September. During this consolidation period, Bitcoin is likely to trade between $60,000 and $70,000, leading to variations in portfolio valuations for long-term investors. This consolidation phase presents opportunities for investors to buy Bitcoin near the lower boundary of the range and accumulate at stable prices.
While long-term investors benefit from accumulating Bitcoin during consolidation, short-term traders such as swing traders and day traders can capitalize on price fluctuations between established support and resistance levels. These fluctuations offer opportunities for traders to generate significant profits in the short term, leveraging the price movements within the range set by Bitcoin.
As of now, Bitcoin is trading at $68,720, representing a 2.27% gain in the last day, a 2.31% gain over the past week, and a 6.90% increase in the last month. Despite these gains, the daily trading volume has decreased by 45.68%, now valued at $24 billion. Bitcoin remains 6.94% below its all-time high of $73,750, indicating cautious investor sentiment and consolidation within a narrow range as the cryptocurrency approaches significant resistance levels once again.
The future of Bitcoin post-halving remains uncertain yet promising, with analysts anticipating a major price breakout in September. While long-term investors focus on accumulating Bitcoin during consolidation, short-term traders have the opportunity to profit from price fluctuations between support and resistance levels. As Bitcoin continues to consolidate within a narrow range, cautious investor sentiment and declining trading volume suggest an upcoming price movement that could impact the broader cryptocurrency market.
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