Why is the $69,000 Bitcoin not out of danger yet?
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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. As the queen of cryptos seems to be gearing up for new bullish attempts, this recent rise raises questions about its sustainability and the accompanying risks.
![Bitcoin remonte, mais les risques sont toujours là](https://www.cointribune.com/app/uploads/2024/05/Sinapi-1-5-1024x683.png)
Bitcoin Bounces Back
Bitcoin’s price reached $69,000, a significant 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 drop of three to four days. Investors remain attentive, ready to react based on closures above the key level of $67,900.
The situation of altcoins remains relatively stable, with some notable performances. Ethereum, the largest altcoin by market capitalization, saw its price increase by 20% in a week, surpassing $3,700. Among the top 100 cryptocurrencies, PEPE Coin stood out with a rise of over 57%, reaching a new all-time high. Conversely, some altcoins like AR, AKT, FTM, JUP, ORDI, and TRX recorded drops ranging from 7% to 14%.
Bitcoin Out of the “Danger Zone,” But For How Long?
According to Rekt Capital, a renowned crypto analyst, Bitcoin has recently escaped what he calls the “post-halving danger zone,” a critical period where the cryptocurrency tends to experience significant drops after the halving of mining rewards. Rekt Capital explains that, although this danger phase has passed, Bitcoin could still experience a correction of around 13% from its current value. “Since the end of the post-halving danger zone, Bitcoin reached $71,500. However, this level represents significant resistance in the macro reaccumulation range, leading to a price rejection,” he explains.
The analyst points out that, historically, Bitcoin always rejects the first breakout attempt after a halving. This reaccumulation phase could last up to 160 days after the halving, which means the cryptocurrency might not cross the $70,000 threshold before September 2024. “Consolidation should continue for several weeks, oscillating between $60,000 and $70,000,” adds Rekt Capital.
While history shows that the path to new highs is fraught with obstacles, Bitcoin’s recent rise to $69,000 and its exit from the post-halving “danger zone” are encouraging developments. Still, caution is warranted!
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