Key Points
- Bitcoin [BTC] has moved into a re-accumulation zone, suggesting a potential bounce back to $65,065.
- Negative values of the Cumulative Liquidation Level Delta (CLLD) could indicate a bullish trend for Bitcoin’s price.
Crypto trader Rekt Capital has indicated that Bitcoin [BTC] has left its danger zone and is now in a re-accumulation area.
This observation was shared on X (previously Twitter) on May 11th.
Post-Halving Cycle Analysis
Rekt Capital referred to the 2016 post-halving cycle to support his analysis.
During that period, three bearish engulfing candlesticks appeared within 21 days, followed by BTC surging past $4,250 within a few months.
A similar pattern of red candlesticks has been observed on the 2024 chart, suggesting that Bitcoin’s correction phase may be nearing its end.
At the time of writing, Bitcoin’s price stood at $60,509, a 5.61% decrease over the past seven days.
Market Liquidity and Price Movement
Data from Hyblock, as observed by AMBCrypto, indicated a magnetic zone around liquidation levels, suggesting price levels where traders risk being liquidated.
The blue magnetic zone indicates high liquidity and suggests potential price movement in that direction.
For Bitcoin, this could mean a short-term price movement towards $65,065, provided BTC bounces back.
Failure to bounce back could lead to a further decrease in price.
The Cumulative Liquidation Level Delta (CLLD) was negative, which could suggest a bullish trend for Bitcoin’s price if sustained.
Hodler Net Position Change
The Hodler Net Position Change, a metric on Glassnode, tracks the monthly net position of long-term investors.
A positive reading implies accumulation.
As of the first week of May, long-term holders bought 26,990 BTC on May 10th, indicating that this accumulation trend may continue.
Sustaining this momentum could ensure that Bitcoin trades above $60,000 in the coming days, potentially leading to a parabolic upside.
However, traders should be cautious as BTC could drop further.
As per Rekt Capital, Bitcoin might still have two more days of downside before the price begins to rise slowly.
