Bitcoin Has Entered A Post-Halving "Danger Zone", Analyst Warns - Price Dips or Accumulation Phase?

Key Insights

• Bitcoin is in a post-halving "danger zone", meaning that prices are in their most volatile stage yet.

• The current accumulation phase could last 60 to 150 days

• A bullish breakout is expected before September 2024, which is when Bitcoin can reach a new all-time high.

• Investors should be prepared for volatility, as Bitcoin reacts to the new dynamics of supply from the halving

The crypto market is consolidating for far longer than normal, despite the halving being more than a week past already.

As the halving dust settles, analysts are beginning to see things more clearly without the “noise” and the hype, and are starting to come up with predictions as to what Bitcoin might do next.

One of these analysts is Rekt Capital—and according to new insights in a recent Twitter post, Bitcoin has entered a post-halving “danger zone”.

Let's go over the implications of this danger zone, and what it might hold for the future of Bitcoin.

The Halving Effect on Bitcoin’s Value

The “danger zone” phenomenon isn’t a new idea by any means.

Danger zones occur before or after the halving, and are used to describe a time in the crypto market, when prices are the most volatile, as they adjust to the new supply dynamics, brought on by the halving.

Take the 2016 halving for example (the second Bitcoin halving).

Bitcoin dropped by more than 10%, right around three weeks after the halving. The 2024 halving happened about a week ago, and market commentators are on the lookout for any repetitions.

However, it isn’t all bad.

According to Rekt Capital, the Danger Zones set the stage for the post-halving accumulation phase, in which Bitcoin consolidates for about 150 days at the most.

“The Bitcoin Post-Halving "Danger Zone" is where historical Post-Halving Retraces have continued. […]. In this cycle, Bitcoin has entered the Post-Halving Danger Zone and is very near the Range Low”

This phase serves as a buffer, stabilizing all metrics and preparing investors for the final takeoff that brings Bitcoin into its new cycle high.

In fact, historically speaking, this period is very important for laying the groundwork for an incoming bullish breakout, which analysts seem to agree might happen as early as  September 2024.

Analyzing the Current Cycle

How long will this “Re-Accumulation Range” last?

Analysts can't seem to agree—however, Bitcoin appears to be in some form of accelerated bullishness, as shown by its earlier-than-normal all-time high in mid-March this year.

Analysts agree that Bitcoin seems to be accelerated by around 260 days.

However, with the recent consolidation between $61,000 and $70,000, it appears that Bitcoin is attempting to slow down, meaning that we should see the Re-Accumulation Range span anywhere between 60 to 150 days.

To put things simply, Bitcoin's takeoff to a new all-time high will likely happen suddenly, and at an accelerated rate.

Overall, it might help to be on high alert for any sudden Bitcoin dips or takeoffs from here, considering how the pioneer cryptocurrency is currently in one of its most volatile phases yet.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.