- Bitcoin’s market structure indicates it is nearing a re-accumulation zone, suggesting a potential recovery from recent losses.
- Analysts predict a bounce to $65,065 could be in sight for Bitcoin once it recovers.
- Long-term holders are showing signs of accumulation, further indicating a potential price increase.
As Bitcoin’s market structure shows signs of nearing a re-accumulation zone, analysts predict a potential bounce to $65,065. With long-term holders showing signs of accumulation, a price increase may be on the horizon.
Bitcoin Nearing Re-Accumulation Zone
According to crypto trader Rekt Capital, Bitcoin [BTC] has exited the danger zone and is now in the re-accumulation area. This observation was shared on X (formerly Twitter) on May 11th. The post-halving correction appears to be satisfied, and Bitcoin may soon leave the danger area entirely.
End of Red Days in Sight
Rekt Capital referred to the 2016 post-halving cycle to support his analysis. During this period, three bearish engulfing candlesticks appeared within 21 days, followed by a surge past $4,250 in the following months. A similar pattern of red candlesticks is visible on the 2024 chart, suggesting that Bitcoin’s correction could be nearing its end. As of now, Bitcoin’s price stands at $60,509, a 5.61% decrease over the last week.
Potential Bounce to $65,065
Data from Hyblock indicates a magnetic zone around liquidation levels, which represents price levels where traders risk being liquidated. For Bitcoin, the price could move toward $65,065 in the short term, provided it manages to bounce back. Failure to reverse upwards could result in a further price decrease. The Cumulative Liquidation Level Delta (CLLD) is currently negative, indicating that shorts are starting to feel more of the liquidations. If this trend continues, it could be bullish for Bitcoin’s price.
Long-Term Holders Accumulating
Further evidence of a potential price increase comes from the Hodler Net Position Change metric on Glassnode. This metric tracks the monthly net position of long-term investors. A positive reading indicates accumulation, which has been the case since the first week of May. Specifically, long-term holders bought 26,990 BTC on May 10th. If this accumulation continues, it could help Bitcoin trade above $60,000 in the coming days and set the stage for a parabolic upside.
Conclusion
While Bitcoin’s recent performance has caused many long liquidations, the market structure suggests that it is nearing a re-accumulation zone. This, coupled with signs of accumulation from long-term holders, indicates a potential recovery. Analysts predict a bounce to $65,065 could be in sight for Bitcoin once it recovers. However, traders should remain cautious as further downside is possible before the price begins to rise.
