Bitcoin’s (BTC) price rose above the $65,000 mark on May 6 as analysts argue that the post-halving “danger zone” may be over with more BTC upside on the way.
Bitcoin out of the post-halving ‘danger zone’ – analyst
Bitcoin’s post-halving “danger zone” is a three-week window after the halving, historically associated with downside volatility occurring below the re-accumulation range.
With Bitcoin rising above the current re-accumulation range of approximately $60,000, the post-halving danger zone may be over, according to popular crypto analyst Rekt Capital. He wrote in a May 6 post:
“Time-wise the post-Halving “Danger Zone” will continue for the remainder of this week, to see out its third final week in this post-Halving window. However, price-wise the anticipated effect has already occurred.”BTC/USD chart. Source: Rekt Capital
During the 2016 bull cycle, Bitcoin produced an 11% downside wick 21 days after the halving, which marked the beginning of the price reversal, noted Rekt Capital in a May 6 X post:
“History did repeat because in this cycle Bitcoin produced a -6% downside wick below its respective Range Low in the 15 days after the Halving. Bitcoin has since rebounded strongly to the upside… The Bitcoin Post-Halving “Danger Zone” is over.”
Meanwhile, Bitcoin analyst Willy Woo also expects higher BTC prices based on the Volume-Weighted Average Price (VWAP), a popular oscillator used by traders to determine the average asset price based on price action and volume.
Woo wrote in a May 6 X post:
“Seems like a good setup for BTC to reach escape velocity. Bull divergence with lots of room to run.”Bitcoin VWAP Oscillator. Source: Willy Woo
Further showcasing a change in investor sentiment, the Crypto Fear & Greed Index rose to 71/100, signaling “greed,” up from 43/100, or “fear,” on May 2.
Source: Crypto Fear & Greed Index
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