Bitcoin (BTC) Price Trading in Post-Halving Danger Zone, How Much Can It Retrace?

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As an experienced financial analyst, I’ve closely followed the cryptocurrency market, particularly Bitcoin, for several years. Based on the current trends and historical analysis, I believe that Bitcoin is currently in a precarious position following its halving event. The potential “Danger Zone,” as highlighted by Rekt Capital, could see downside volatility over the next 15 days, with significant attention focused on the Re-Accumulation Range Low.

As a researcher studying the cryptocurrency market, I’ve observed that Bitcoin, the largest digital currency by market capitalization, experienced selling pressure earlier in the week. This push caused its price to dip below $65,000. The cause for this downward trend appears to be the deceleration of US GDP growth and business activity. At the moment of writing, the Bitcoin price stands at $64,256, with a market capitalization of approximately $1.265 trillion.

Bitcoin price In Post-Halving ‘Danger Zone’

As a crypto analyst, I’ve sounded the alarm about a potential “Danger Zone” in the market following Bitcoin’s recent halving event. Looking back to historical trends from 2016, I’ve noticed that around 21 days post-halving, there was a notable downward price correction of approximately -11%. However, after this dip, Bitcoin experienced an upward reversal.

As a financial analyst, I’ve been closely monitoring Bitcoin’s price action following its halving event six days ago. Based on historical trends, it’s important to note that there is a potential for increased downside volatility within the next two weeks, which is often referred to as the “Danger Zone.” This period, ending in 15 days, has seen significant price drops in the past after Bitcoin’s halving events. However, it’s essential to mention that there could still be potential for downward pressure around the current Range Low of $60,600 even before this 15-day window concludes.

Bitcoin (BTC) Price Trading in Post-Halving Danger Zone, How Much Can It Retrace?

I’ve been observing Bitcoin’s price action and it seems its efforts to break through the $65,600 resistance have come up short, failing to transform this level into support. Over the past few weeks, we’ve witnessed a persistent downward trend with Bitcoin inching closer to the $60,600 liquidity pool marked in green on the chart.

As a researcher, I’ve come across contrasting perspectives regarding Bitcoin’s current price level. While some analysts are optimistic about the sustainability of the $60,000 support, Peter Schiff expresses skepticism. He holds the view that the Bitcoin price may not hold at this level and is instead forecasting a potential decline towards lower prices.

Tech Stock Rout Puts Pressure on BTC

The drop in Bitcoin’s value occurred at the same time that major U.S. tech stocks, including Meta Platforms Inc (NASDAQ: META), Microsoft Corporation (NASDAQ: MSFT), and Alphabet Inc (NASDAQ: GOOGL), experienced a downturn. This was triggered by Meta reporting lower-than-expected revenue projections. Consequently, Meta’s stock price declined by 15% in after-hours trading, causing Microsoft and Alphabet to drop by 2% and 3%, respectively.

Historically, Bitcoin’s price movements have closely followed those of tech stocks in the United States due to their shared reputation as high-risk, high-reward investments. However, this connection weakened somewhat earlier in the year, particularly with the launch of spot Bitcoin ETFs in the U.S., resulting in Bitcoin’s price outpacing tech stock growth.

Despite the uncertain macroeconomic situation, Bitcoin ETF investments have seen a decrease in inflows, indicating a weakening trend. The recent GDP report, which missed the mark, has put the Federal Reserve in a predicament, restricting their potential actions. This data has led investors to reconsider the likelihood of interest rate reductions by the Fed in 2024, thereby delaying those expectations.

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2024-04-26 10:08