Bitcoin (BTC) has successfully managed to navigate the treacherous waters of its post-halving phase, traditionally marked by increased volatility and price corrections. According to leading crypto analysts, the leading cryptocurrency is now preparing for a period of reaccumulation and could potentially lead to a significant rally in the second half of the year.
Halving challenges overcome
Following the recent halving, which halved the number of new Bitcoins in circulation, Bitcoin experienced a 23% price decline, falling from a high of $65,000 in mid-March to a low of $56,800 in early May. This period, known as the “danger zone,” usually sees Bitcoin decline as the market adjusts to reduced supply.
However, analysts such as Rekt Capital believe that Bitcoin has successfully overcome this difficult phase. The recent recovery from the May 1 lows marks a transition back into the accumulation phase and potentially marks the bottom of this cycle. This is consistent with historical data showing similar price declines following halving events.
What are the bullish signals and macroeconomic factors?
In addition to the optimistic outlook, there are also bullish signals from technical indicators. Crypto analyst Ali Martinez highlighted a recent buy signal from the TD Sequential indicator on Bitcoin’s hourly chart, signaling the upcoming price increase. The broader economic landscape also plays an important role in shaping Bitcoin’s trajectory. The announcement of the April Consumer Price Index (CPI) this week is an important event to watch.
While forecasts predict that inflation will remain above the FED target, famous macro guru Raoul Pal suggests that the coming months may be advantageous for cryptocurrencies. It defines the “banana zone,” a period of high global liquidity historically associated with strong performance in high-risk assets such as Bitcoin. This suggests that external economic conditions may further fuel Bitcoin’s rise in the second half of the year.
Whales accumulate Bitcoin
Interestingly, Bitcoin’s recent recovery coincides with significant activity from large investors, often referred to as “whales.” Whales collected a massive 15,400 BTC from cryptocurrency exchange Coinbase alone in the last 24 hours. This accumulation may be a key factor driving the current price recovery. Additionally, the decline in open interest in Bitcoin futures indicates a potential short squeeze. As the price recovers, short sellers who bet on a price decline are forced to buy back their positions. This further accelerates the upward momentum.
Although Bitcoin seems to be leaving the danger zone after the halving and the indicators are on the rise, the market remains cautious. Investors are advised to monitor global economic trends and market signals to assess their potential impact on cryptocurrency prices. In general, recent developments paint a promising picture for Bitcoin. The combination of technical analysis, on-chain whale activity, and potential macroeconomic factors suggest that Bitcoin could be poised for a significant rise in the coming months. However, investors need to be careful and do detailed research before making an investment decision.
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