Bitcoin Halving Danger Zone: 2 Days Left with BTC Price Testing $60K

Bitcoin faced a significant challenge as it dropped below the $60,000 support level during the May 10 daily close, causing concern among bullish investors. Trading data from Markets Pro and TradingView revealed that the intraday lows for BTC price on Bitstamp were at $60,190. The sudden decline made it difficult to maintain levels around $63,000, and there are mixed opinions on what caused this downward movement.

Some market analysts believe that large-volume institutional players may have played a role in the drop. Material Indicators, a trading resource, speculated that an institutional entity may have prevented Bitcoin from breaking out over the weekend when the BTC ETF market was closed. A chart showed an order book liquidity on Binance, the largest global exchange, with a new block appearing around $62,500. Material Indicators predicted that this block might be removed after the weekly close.

Popular trader and analyst Rekt Capital provided a perspective on BTC price behavior following the block subsidy halving that occurred last month. It has been observed that Bitcoin tends to drop in the weeks after a halving event, and this “danger zone” is now coming to an end. In April, Rekt Capital accurately predicted a significant downside movement for Bitcoin within a two-week period, resulting in a drop to a two-month low of $56,500.

Rekt Capital stated that Bitcoin had indeed fallen below the Re-Accumulation Range Low, similar to what happened in 2016 after a halving event. He concluded that the price-wise aspect of the Post-Halving “Danger Zone” had been fulfilled. He mentioned that the time aspect of the “Danger Zone” would officially end in two days.

Bitcoin experienced a decline in price and faced challenges in maintaining support above $60,000. Various factors, including institutional activity and market cycles following halving events, contributed to this downward movement. With the “danger zone” coming to an end, there is potential for a change in Bitcoin’s price behavior in the near future.