- • Bitcoin price is down today, but some analysts say BTC is in a reaccumulation range that could last up to 5 months
- • Analysts have set price targets for Bitcoin as low as $42,000 during this corrective cycle
- • The 200-day exponential moving average around $51,900 provides the last line of defense for Bitcoin’s price
Bitcoin’s price has seen a significant decline in recent weeks after hitting an all-time high in March. Some analysts now believe the top cryptocurrency could fall to $42,000 or lower in the ongoing corrective cycle.
Halving Fails to Boost Bitcoin Price
Bitcoin has defied its history by turning down after its 2024 halving event. BTC price is currently trading 17% below its all-time high and has dropped 7% since its supply subsidy halving on April 20. Some analysts are now convinced that the cryptocurrency will descend into the low $40,000 range.
Indicators Suggest Market Top is In
In recent comments, independent trader Ali attempted to decipher whether the BTC price had reached a market top. He drew comparisons to previous halving cycles when spikes in Bitcoin realized profits have historically coincided with market tops.
Referencing Glassnode data that showed realized profits skyrocketed to $352 billion when Bitcoin hit all-time highs on March 14, Ali noted that similar levels were observed during the 2021 bull market peak. Before calling a market top, the trader said he was waiting for another confirmation involving a sustained close below the BTC’s short-term holders‘ realized price.
Bitcoin in Reaccumulation Range Before Next Bull Run
Bitcoin has defied its history by turning down after its 2024 halving, but independent analyst Rekt Capital suggested that the drawdown remains an important part of a classic bull market setup.
According to Rekt Capital, the BTC price is currently in a “Re-accumulation Range” that usually develops before and after the halving. The goal now is for Bitcoin to move sideways to catch a breather for the market to cool off after fantastic pre-halving price performance.
Rekt Capital explained that the range concludes with a breakout from it several weeks and even months after the halving event.
200-day EMA Could Provide Support
From a technical perspective, Bitcoin’s price was sitting on immediate support from the 100-day EMA at $59,944. Losing this level would cause the price to drop and collect liquidity toward the 200-day EMA currently sitting at $51,900. Such a move would represent a 15% decline from current levels.
The 200-day EMA also aligns with Bitcoin’s horizontal support zone between $50,000 and $52,000. This support, after being held in February, preceded a 42% surge in price to all-time highs.
