- Bitcoin’s post-halving ‘danger zone’ is over as Bitcoin establishes a firm footing above the $60,000 re-accumulation range
- Long-term Bitcoin holders appear to have finished selling at the $70,000 price level, which could reduce sell pressure and pave the way for a gradual climb to new highs
- Analysts expect Bitcoin’s price to reach $100,000 before the end of 2024, fueled by anticipated interest rate reductions, renewed demand in ETFs, and advancements in Bitcoin Layer 2 solutions
A key post-halving period known as the ‘danger zone’ has come to an end, suggesting further upside for Bitcoin, according to analysts. The cryptocurrency has established a firm footing above the $60,000 re-accumulation range.
Bitcoin Exits the Post-Halving Danger Zone
The post-halving danger zone refers to a volatile three-week period after the halving when prices historically fall below the re-accumulation level.
With Bitcoin rising above $60,000, the current re-accumulation range, the danger zone is likely over, noted analyst Rekt Capital. During the 2016 cycle, Bitcoin saw an 11% drop 21 days after the halving. This time, it fell 6% below the re-accumulation range 15 days post-halving before rebounding strongly.
Other Metrics Signal Continued Strength
The VWAP oscillator, which measures average price based on volume, suggests room for Bitcoin to reach “escape velocity,” according to analyst Willy Woo.
Meanwhile, the Crypto Fear & Greed Index rose to 71, indicating greed and a change in investor sentiment from fear previously.
Distribution by Long-Term Holders Slowing
Outflows from Bitcoin ETFs contributed to the recent correction. However, data shows long-term holders have likely finished selling around $70,000. This could reduce selling pressure and enable a gradual climb to new highs.
Bitcoin May Consolidate Short-Term
Concerns around inflation and reduced expectations for rate cuts could keep Bitcoin subdued short-term. After this consolidation, the cryptocurrency could reach $100,000 by end of 2024 once macro conditions improve, according to some experts.
Conclusion
With the danger zone over, Bitcoin appears poised for further upside based on improving sentiment and easing sell pressure. While short-term headwinds persist, the long-term outlook remains bullish.
