Bitcoin Primed for Accumulation, Surge to $65,065 Possible

Bitcoin's recent market performance suggests it may be nearing a re-accumulation zone, indicating a potential bounce to $65,065. According to Rekt Capital, BTC has exited the danger zone and entered the re-accumulation phase, marking the end of its post-halving correction. The presence of a magnetic zone around liquidation levels and favorable Hodler Internet Position Change indicate potential upside for Bitcoin's price. However, traders should exercise caution as BTC may experience a further decline over the next two days before initiating a bullish rally.

Bitcoin Poised for Re-Accumulation, Surge to $65,065 Anticipated

Bitcoin (BTC) has emerged from the danger zone and is now poised for a re-accumulation phase, according to renowned crypto analyst Rekt Capital. This analysis, shared via the social media platform X (formerly Twitter) on May 11th, provides compelling evidence of Bitcoin's impending recovery and potential trajectory.

Rekt Capital's analysis relies on the post-halving correction pattern observed in Bitcoin's historical price movements. The analyst highlights the formation of three bearish engulfing candlesticks within 21 days during the 2016 post-halving cycle. Subsequently, BTC surged beyond $4,250 within a few months. Notably, a similar set of red candlesticks has appeared on the 2024 chart, indicating that Bitcoin's correction may be nearing its end.

At the time of writing, Bitcoin's value stands at $60,509, reflecting a 5.61% decline over the past seven days. This dip has resulted in the liquidation of a significant number of BTC contracts in the market.

Data provided by Hyblock reveals the existence of a "magnetic zone" around liquidation levels. This indicator identifies price levels at which traders face a high risk of liquidation. In the case of Bitcoin, the magnetic zone (blue) suggests that the price may move towards $65,065 in the near term.

This projection assumes a successful bounce by BTC. Failure to reverse upwards could trigger further price declines. Additionally, the Cumulative Liquidation Level Delta (CLLD) remains negative, indicating that short positions are experiencing a higher proportion of liquidations. Sustained negative CLLD values are considered bullish indicators for Bitcoin's price.

Another metric supporting the potential price increase is the Hodler Net Position Change, tracked by Glassnode. This metric measures the monthly net position of long-term investors. A negative value indicates that Bitcoin holders are realizing gains or cashing out their holdings. Conversely, a positive reading implies accumulation.

Until the last week of April, the Hodler Net Position Change metric was negative, suggesting that investors were booking profits. However, since the first week of May, this trend has reversed. Notably, long-term holders purchased 26,990 BTC on May 10th. If this accumulation continues, it could provide further support for Bitcoin's upward trajectory.

Maintaining this momentum would ensure that Bitcoin remains above $60,000 in the coming days. In the long term, this accumulation phase could serve as a catalyst for a parabolic upside.

It is important to note that traders should remain cautious as Bitcoin may experience further downside movement in the short term. As Rekt Capital suggests, Bitcoin may still have two additional days of decline before a gradual price recovery commences.