- Bitcoin (BTC) has successfully navigated the perilous waters of the post-halving phase, traditionally marked by increased volatility and price corrections.
- Leading crypto analysts believe that the leading cryptocurrency is now preparing for a re-accumulation phase, potentially leading to a significant rise in the second half of the year.
- “The dangerous zone”, known for typically witnessing a Bitcoin decline due to the market adjusting to the reduced supply, has been successfully overcome, according to analysts like Rekt Capital.
Bitcoin is showing promising signs of a potential rise in the second half of the year, following a successful navigation of the post-halving phase. Leading crypto analysts suggest that the cryptocurrency is preparing for a re-accumulation phase, with significant activity from large investors, known as “whales”, potentially driving a price recovery.
Overcoming the Challenges of Halving
Following the latest halving event, which halves the number of new Bitcoins entering circulation, Bitcoin experienced a 23% price drop, falling from its mid-March peak of $65,000 to $56,800 in early May. However, analysts like Rekt Capital believe Bitcoin has successfully navigated this challenging phase. The recent recovery from the lowest levels of May 1st signals a transition to a re-accumulation phase, potentially marking the bottom of this cycle. This aligns with historical data showing similar price declines following halving events.
Bullish Signals and Macroeconomic Factors
In addition to the optimistic outlook, there are also bullish signals coming from technical indicators. Crypto analyst Ali Martinez highlighted a recent buy signal from the TD Sequential indicator on Bitcoin’s hourly chart, signaling an upcoming price increase. The broader economic landscape also plays a significant role in shaping Bitcoin’s trajectory. The April Consumer Price Index (CPI), set to be announced this week, is a key event to watch. Predictions suggest inflation will remain above the FED target, while renowned macro guru Raoul Pal suggests the coming months could be advantageous for cryptocurrencies. He describes a period of high global liquidity, historically associated with strong performance in high-risk assets like Bitcoin, as the “banana zone”. This suggests external economic conditions could further boost Bitcoin’s rise in the second half of the year.
Whales Accumulating Bitcoin
Interestingly, Bitcoin’s recent recovery coincides with significant activity from large investors, commonly referred to as “whales”. Whales collected a massive 15,400 BTC from the crypto exchange Coinbase alone in the last 24 hours. This accumulation could be a major factor driving the current price recovery. Additionally, the decline in open positions in Bitcoin futures signals a potential short squeeze. As the price recovers, short sellers betting on a price decline are forced to buy back their positions, further accelerating the bullish momentum.
Conclusion
While Bitcoin appears to be exiting the danger zone following the halving and indicators are turning bullish, the market continues to exercise caution. Investors are advised to monitor global economic trends and market signals to assess their potential impacts on cryptocurrency prices. Overall, 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 preparing for a significant rise in the coming months. However, investors should exercise caution and conduct thorough research before making investment decisions.
