Bitcoin Distribution Danger Zone Might Be Over

The analysis suggests that Bitcoin has emerged from its post-halving danger zone as it firmly establishes itself above the $60,000 reaccumulation range.

Source:www.coinkolik.com

Analysts argue that Bitcoin may have surpassed the post-halving peril zone as its price surged above $65,000 on May 6, suggesting further upside potential for BTC.

Bitcoin Is Out Of The Post Halving Danger Zone

According to a well-known crypto analyst, Bitcoin's post-halving danger zone typically spans a three-week period following the halving, characterized by downside volatility below the reaccumulation range. With Bitcoin now surpassing the current reaccumulation range of around $60,000, it's suggested that the post-halving danger zone might be over. This observation is supported by historical data from the 2016 bull cycle, where Bitcoin experienced an 11% downside wick 21 days after the halving, signaling the onset of a price reversal.

Additionally, Bitcoin analyst Willy Woo anticipates higher BTC prices, drawing insights from the volume-weighted average price (VWAP), a widely used oscillator among traders for assessing the average asset price based on both price action and volume.

Bitcoin VWAP Oscillator. Source: Willy Woo

Bitcoin Long Term Holders Finished Selling

Outflows from 11 United States spot Bitcoin exchange-traded funds (ETFs) have played a role in Bitcoin's correction. These ETFs experienced their highest week of outflows since inception, with nearly $900 million in net cumulative outflows over the past week, as per data. Interestingly, data indicates that long-term holders (LTH) who held Bitcoin at the $70,000 price level have concluded their selling to new investors. Consequently, this suggests the potential beginning of a new active accumulation phase.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.