Sunday, May 26, 2024
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Bitcoin recently crossed a key threshold by surpassing $69,000. The rally, buoyed by a series of positive developments, came after a long period of stability. The queen of cryptocurrencies seems to be gearing up for a new bullish attempt, but this recent rally raises questions about its sustainability and the risks involved.
Bitcoin Recovers
Bitcoin price hit $69,000, a significant milestone reached after a series of attempts to break out of a years-long consolidation. The rally was buoyed by a string of positive news headlines throughout the week.
Despite this surge, market volatility is still evident. Bitcoin appears to be preparing for another bullish attempt after 3-4 days of modest declines. Investors remain cautious and are ready to react based on a close above the critical level of $67,900.
The altcoin situation was relatively stable with some notable performances. Ethereum, the largest altcoin by market cap, saw a 20% price increase in a week, reaching over $3,700. Among the top 100 cryptocurrencies, PEPE coin stood out with an increase of over 57%, reaching an all-time high. Conversely, some altcoins such as AR, AKT, FTM, JUP, ORDI and TRX recorded declines ranging from 7% to 14%.
Bitcoin is out of the 'danger zone', but for how long?
According to well-known cryptocurrency analyst Rekt Capital, Bitcoin has recently escaped what he calls the “post-halving danger zone,” a key period when cryptocurrencies tend to experience significant declines after the halving of mining rewards. Rekt Capital explains that although this danger phase has passed, Bitcoin may experience a correction of around 13% from its current value. “Since the end of the post-halving danger zone, Bitcoin has reached $71,500. However, this level represents a major resistance in the macro reaccumulation range, leading to price rejection,” he explains.
Analysts note that historically, Bitcoin has always rejected the first post-halving breakout attempt. This re-accumulation phase could last up to 160 days after the halving, meaning the cryptocurrency may not cross the $70,000 threshold until September 2024. “The consolidation will likely continue for a few weeks, fluctuating between $60,000 and $70,000,” Rekt Capital added.
History shows that the path to new highs is full of obstacles, but Bitcoin’s recent rise to $69,000 and escape from the post-halving “danger zone” is a silver lining. Still, caution is advised.
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He holds a degree from Sciences Po Toulouse and is a Blockchain Certified Consultant by Alyra. In 2019, he returned to the Cointribune venture, working to expand the potential of blockchain to multiple sectors of the economy and to educate and inform the public about the constantly evolving ecosystem. My objective is to gain a deeper understanding of blockchain and seize the opportunities it offers. I am committed to providing an objective analysis of the current situation, elucidating market trends, communicating the latest technological innovations and gauging the prospects of economic and social challenges in this revolution of the market.
Disclaimer
The views, thoughts and opinions expressed in this article are those of the author and should not be taken as investment advice. Please conduct your own research before making any investment decisions.
