Crypto analyst Rekt Capital has dropped a peculiar analysis on when Bitcoin might resume its upward trajectory. According to a post on social media platform X by the popular analyst, Bitcoin could finally exit the “danger zone” in the next two days.
This prediction has come amidst speculations on when and whether Bitcoin would continue a price surge as current price action shows the crypto is now ranging around the $68,000 price level.
Bitcoin Exiting Danger Zone: What Does This Mean?
Bitcoin has been subject to various price outlooks from different crypto analysts in the past few weeks, especially after the recent completion of the halving. While some analysts are predicting a price drop to as low as $52,000, others are still bullish. Rekt Capital’s recent outlook regarding the cryptocurrency puts him among the latter category of analysts who remain bullish.
Rekt Capital’s bullish prognosis regarding Bitcoin seems to be very intriguing, as he’s going by a peculiar term which he called the danger zone. His outlook on the danger zone is based on Bitcoin’s price action in 2016. The cryptocurrency, in his opinion, is currently mirroring its price movement in 2016.
As he noted in a BTCUSD one-week time frame chart, Bitcoin has largely been in a correction phase after the halving, which he called the re-accumulation range. However, Bitcoin created a wick that extended below the low of the re-accumulation range just like it did in a three-week window after the 2016 halving.
This wick extension refers particularly to Bitcoin’s break below the $60,000 price level early last week as it extended to the $56,000 price mark. According to him, the extension of this week means that Bitcoin has satisfied the Post-Halving danger zone and it could end in just the next two days.
Bitcoin indeed downside wicked below the Re-Accumulation Range Low just like in 2016
Thus price-wise, the Post-Halving “Danger Zone” purple has been satisfied
Time-wise however, the “Danger Zone” officially ends in 2 days$BTC #Crypto #Bitcoin https://t.co/5GHCnZrmB1 pic.twitter.com/Qnx9zAevAy
— Rekt Capital (@rektcapital) May 11, 2024
Undoubtedly, Bitcoin’s breakout above this zone means it is now free from a strong move to the downside. From this point, all the roads lead to a price uptick if it continues to mirror the 2016 price action. Although Rekt Capital did not give a particular price target, his chart analysis indicates Bitcoin surging above $180,000, representing a 200% increase from the current price level.
What’s Next For Bitcoin?
At the time of writing, Bitcoin was trading at $60,728 and is down by 4.7% in the past seven days. The crypto is yet to return to the $70,000 price level since early April. It appears as if the supply and demand effect of the halving has yet to be factored into the price of BTC.
Historically, Bitcoin has experienced price surges between six to nine months after past halvings. This means the cryptocurrency could still continue to dilly-dally around $60,000 for some time, giving investors more time to accumulate before a strong price increase.
Featured image from www.projectmasam.com, chart from TradingView
