According to crypto analyst Rekt Capital, Bitcoin (BTC) has exited the danger zone and entered a phase of re-accumulation, as noted in a post on May 11.
Rekt Capital’s analysis shows that Bitcoin has successfully navigated the post-halving correction, potentially leaving the danger zone within two days. Drawing parallels with the post-halving cycle in 2016, where BTC saw three bullish engulfing candles within 21 days, Rekt Capital suggests a similar pattern may have emerged in 2024, hinting at a possible end to Bitcoin’s correction.
At the time of writing, Bitcoin is trading at $60,509, marking a 5.61% decline over the past week.
Hyblock’s analysis reveals a magnetic zone around liquidation levels, indicating potential price movements. This magnetic zone, depicted in blue, signifies high liquidity levels and implies a short-term price target of $65,065 if Bitcoin experiences a rebound.
Additionally, the current cumulative liquidation level delta (CLLD) is negative, indicating an increase in liquidations among short positions. This could be favorable for Bitcoin’s price if sustained.
Further insights from Glassnode’s Hodler Net Position Change metric suggest a shift from profit-taking to accumulation among long-term investors. Long-term holders purchased 26,990 BTC on May 10, indicating a shift towards accumulation.
Despite these positive indicators, caution is advised as Rekt Capital suggests that Bitcoin may undergo further downward movement in the next two days before gradually climbing.
