Why is the $69,000 Bitcoin not out of danger yet?
Bitcoin recently crossed a crucial threshold by surpassing $69,000. This progression, supported by a series of positive news, comes after a prolonged period of consolidation. As the queen of cryptos seems to be gearing up for new bullish attempts, this recent rise raises questions about its sustainability and the accompanying risks.
Bitcoin Bounces Back
Bitcoin’s price reached $69,000, a significant milestone that comes after a series of attempts to break out of its long-standing consolidation. This rise was supported by a series of positive news throughout the week.
Despite this surge, market volatility remains palpable. Bitcoin appears to be preparing for another bullish attempt after a slight drop of three to four days. Investors remain attentive, ready to react based on closures above the key level of $67,900.
The situation of altcoins remains relatively stable, with some notable performances. Ethereum, the largest altcoin by market capitalization, saw its price increase by 20% in a week, surpassing $3,700. Among the top 100 cryptocurrencies, PEPE Coin stood out with a rise of over 57%, reaching a new all-time high. Conversely, some altcoins like AR, AKT, FTM, JUP, ORDI, and TRX recorded drops ranging from 7% to 14%.
Bitcoin Out of the “Danger Zone,” But For How Long?
According to Rekt Capital, a renowned crypto analyst, Bitcoin has recently escaped what he calls the “post-halving danger zone,” a critical period where the cryptocurrency tends to experience significant drops after the halving of mining rewards. Rekt Capital explains that, although this danger phase has passed, Bitcoin could still experience a correction of around 13% from its current value. “Since the end of the post-halving danger zone, Bitcoin reached $71,500. However, this level represents significant resistance in the macro reaccumulation range, leading to a price rejection,” he explains.
The analyst points out that, historically, Bitcoin always rejects the first breakout attempt after a halving. This reaccumulation phase could last up to 160 days after the halving, which means the cryptocurrency might not cross the $70,000 threshold before September 2024. “Consolidation should continue for several weeks, oscillating between $60,000 and $70,000,” adds Rekt Capital.
While history shows that the path to new highs is fraught with obstacles, Bitcoin’s recent rise to $69,000 and its exit from the post-halving “danger zone” are encouraging developments. Still, caution is warranted!
