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Bitcoin Approaches End of Post-Halving "Danger Zone" as Prices Fluctuate Near $60K

Market dynamics as Bitcoin tests $60K support

As Bitcoin's "danger zone" nears its end, the cryptocurrency retests critical support levels, influenced by institutional movements and market dynamics.

Key takeaways:

  1. Bitcoin's price has been oscillating around $60,000 as it nears the end of the post-halving "danger zone."
  2. A significant price drop was observed, wiping out recent gains and challenging the $63,000 levels.
  3. Market analysts suggest institutional activities could be impacting price movements, particularly during off-market hours for BTC ETFs.

Bitcoin is on the brink of concluding its critical drawdown phase following April’s halving, with its price teetering around the $60,000 mark as it faced downward pressure in recent trading sessions. The cryptocurrency tested the $60,000 support level into the close of May 10, as reflected in data from TradingView, which recorded intraday lows of $60,190 on Bitstamp.

The drop from highs around $63,000 came unexpectedly, with analysts offering varied interpretations of the underlying causes. Crypto trader Skew commented on X, emphasizing the importance of the $60,800 to $61,000 range for bullish momentum: 

"Monthly open has been swept again as well monthly buyers taken out. If bulls want higher & want to break this downtrend its here imo."

Closing phases of the post-halving "Danger Zone"

Material Indicators, a trading analysis firm, speculated on institutional influence over the weekend, noting: 

"Speculating that some institutional entity may not want to see Bitcoin breakout over the weekend while the BTC ETF market is closed." 

They highlighted a significant sell wall at $62,500 on Binance, suggesting possible manipulation:

"I won't be the least bit surprised if this sell wall moves lower to push price down. I also won't be surprised if we see a roof pull after the W candle closes on Sunday."

As the post-halving "danger zone" nears its end, trader and analyst Rekt Capital revisited his predictions of a downturn following the halving event. True to his forecasts, Bitcoin experienced significant declines, reaching a two-month low of $56,500. 

He stated on X:

"Bitcoin indeed downside wicked below the Re-Accumulation Range Low just like in 2016. Thus price-wise, the Post-Halving ‘Danger Zone’ purple has been satisfied," 

He further noted that time-wise, the turbulence is slated to end in just two days, marking a potential pivot point for Bitcoin’s market trajectory.