Why is Bitcoin at $69,000 not out of danger yet?

Bitcoin recently crossed a crucial threshold by surpassing $69,000. This progression, supported by a series of positive news, comes after a prolonged period of consolidation. While the queen of cryptos seems to be preparing for new bullish attempts, this recent rise raises questions about its sustainability and the risks that accompany it.

Bitcoin is on the rise

Bitcoin's price has reached $69,000, a milestone that comes after a series of attempts to break out of its long-standing consolidation. This rise was supported by a series of positive news throughout the week.

Despite this surge, market volatility remains palpable. Bitcoin appears to be preparing for another bullish attempt after a slight decline of three to four days. Investors remain attentive, ready to react based on closes above the key $67,900 level.

The situation for altcoins remains relatively stable, with some notable performances. Ethereum, the largest altcoin by market capitalization, saw its price rise 20% in a week, surpassing $3,700. Among the top 100 cryptocurrencies, PEPE Coin stood out with an increase of more than 57%, reaching a new all-time high. On the other hand, some altcoins like AR, AKT, FTM, JUP, ORDI and TRX saw declines ranging from 7% to 14%.

Bitcoin out of the “danger zone”, but until when?

According to Rekt Capital, a renowned crypto analyst, Bitcoin has recently escaped what it calls the post-halving “danger zone,” a critical period where the cryptocurrency tends to experience significant declines after halving rewards. mining. Rekt Capital explain that, although this danger phase has passed, Bitcoin could still experience a correction of around 13% compared to its current value. “Since the end of the post-halving 'danger zone', Bitcoin has reached $71,500. However, this level represents major resistance in the macroeconomic reaccumulation range, which has led to a rejection of the price,” he explains.

The analyst specifies that, historically, Bitcoin always rejects the first breakout attempt after a halving. This reaccumulation phase could last up to 160 days after the halving, meaning the cryptocurrency may not cross the $70,000 threshold until September 2024. “The consolidation is expected to continue for several weeks, oscillating between $60,000 and $70,000,” adds Rekt Capital.

While history shows that the path to new highs is strewn with pitfalls, Bitcoin's recent rise to $69,000 and its exit from the post-halving “danger zone” are encouraging developments. Be careful all the same!

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