🚀💰 Historical Cycle Data Shows Bitcoin Has Left 'Danger Zone' 📈📉

One crypto analyst suggests that#bitcoinhas passed the post-halving "danger zone" and is now entering a re-accumulation phase, drawing insights from historical data.

On May 13, market analyst “Rekt Capital” updated his Bitcoin market cycle chart on X, signaling the end of the “danger zone” following the halving event. He noted “a nice recovery from low support in the re-accumulation range,” suggesting positive momentum for Bitcoin.

Historically, Bitcoin went through correction periods before and after the halving event, known as the “danger zone.” During this cycle, Bitcoin corrected 23% from its peak in mid-March to $56,800 on May 1, potentially marking the end of the post-halving danger zone.

The analyst suggests that if $56,000 is indeed the bottom, the current retracement would equal the longest retracement in this cycle at 63 days. However, he expressed confidence that the current support level will hold, suggesting a return to $68,000 is likely.

While historical cycle movements cannot always be predicted into the future, the analyst has observed signs that Bitcoin is slowing in its selling momentum, hinting at an upward trajectory is possible.

In a separate commentary, Raoul Pal, founder of Global Macro Investor, highlighted the importance of the global liquidity cycle in driving market movements, predicting a rise in risk-weighted assets high risk like cryptocurrencies in the second half of this year.

Former CEO #BitMEX Arthur Hayes had a similar view, predicting a period of sideways trading and accumulation before the market gains momentum by the end of 2024. He also pointed to liquidity injections from monetary policy of the Federal Reserve is a factor that could boost investment in crypto and other risk assets.