Bitcoin in the 'Danger Zone': Post-Halving Price Drop and Market Insight

Following Bitcoin's post-halving rally, its price has declined by 6.49%, entering the "Danger Zone" where it historically experiences corrections. Analyst Rekt Capital suggests a potential retrace to $60,000 within two weeks, mirroring past halving trends. Bitcoin spot ETFs saw net outflows of $217 million, with GBTC contributing $138 million.

Bitcoin's Post-Halving Performance and the 'Danger Zone'

Following the highly anticipated Bitcoin halving event on April 19, the cryptocurrency's price has exhibited a perplexing trajectory, initially surging by nearly 10% to reach $67,020 on April 24, only to subsequently decline by 6.49% in the past two days, falling below the $63,000 mark.

This unexpected price drop has captivated the attention of investors and market observers, prompting renowned analyst Rekt Capital to propose a theory that sheds light on Bitcoin's recent decline and potentially forecasts its future price movements.

Post-Halving 'Danger Zone'

In a post published on April 26, Rekt Capital asserts that Bitcoin has entered the post-halving "Danger Zone," a period characterized by historical price corrections following halving events. In 2016, for instance, Bitcoin experienced price retraces in the three weeks following the halving, with a decline of approximately 11%.

Rekt Capital postulates that the current price fall over the past two days indicates that Bitcoin is now within the post-halving "Danger Zone" of the current bull cycle. Should Bitcoin mirror past price behavior during this phase, it could potentially drop to $60,000 within the next two weeks, as projected by the analyst.

At the time of writing, Bitcoin is trading around $62,672, representing a 2.44% decline over the past day and an overall loss of 11.16% in market value during the past month.

Bitcoin ETFs: Minor Inflows and Outflows

Despite the recent price dip, Bitcoin spot ETFs have experienced both inflows and outflows, with data from SoSoValue indicating net outflows of $217 million on April 25. Grayscale's GBTC, the largest Bitcoin spot ETF, accounted for $138 million of these outflows, bringing its total outflows to nearly $17 billion.

Notably, Fidelity's FBTC and Valkyrie's BRRR recorded net outflows for the first time, estimated at $22 million and $20 million, respectively. ARK Invest's ARKB and Bitwise's BITB also witnessed a decline in investment on Thursday.

Conversely, all other Bitcoin spot ETFs, with the exception of Franklin Tempton's EZBC, managed to maintain zero net flows. EZBC saw a modest net inflow of $1.87 million. As of writing, the combined value of BTC spot ETFs stands at $128 billion, indicating significant growth since their trading debut on January 11.

Conclusion

The post-halving performance of Bitcoin remains uncertain, with analysts such as Rekt Capital suggesting the potential for further price declines within the next two weeks. However, it is crucial to note that investing in cryptocurrencies carries inherent risks, and investors are strongly advised to conduct thorough research and exercise caution before making any investment decisions.