bitcoin (btc), the largest cryptocurrency on the market, has been trading within a reaccumulating range between the $59,000 and $70,000 price levels for the past month and a half.
crypto analyst Rekt Capital recently shared his perspective on this phase and its potential duration, based on historical patterns and data in a post on social media platform x (formerly twitter).
Breakout Moment and Historical Patterns
According to Rekt x.com/rektcapital/status/1783840514917163362″ target=”_blank” rel=”nofollow”>analysisbitcoin tends to experience a reaccumulation range after the Halving event, which occurs every four years to counteract any inflationary effects on bitcoin by reducing the reward amount for miners and maintaining scarcity.
Historically, this consolidation phase lasts up to 150 days before bitcoin enters a parabolic uptrend. Based on this pattern, if bitcoin continues to consolidate over the next 150 days, Rekt suggests that a breakout would be expected in September 2024.
The ideal length of a reaccumulation range is crucial in determining bitcoin's future trajectory. Rekt Capital noted that when bitcoin reached a new its highest point (ATH) of $73,700 in mid-March, accelerated its cycle by 260 days. However, with more than 49 days of consolidation, the acceleration has slowed to approximately 210 days.
Resetting the bitcoin Halving Cycle
The repetition of historical trends, in which bitcoin consolidates for 150 days after Halving, would still indicate an acceleration in the current cycle, although to a lesser extent, 60 days.
However, Rekt maintains that ideally bitcoin would consolidate for at least 210 days to completely resynchronize with its history. Halve cycles and reset the current acceleration in this cycle to 0. This would take the acceleration rate to 0 days and potentially lead to a breakout around November 2024.
The analyst also suggested that to achieve a deadline of more than 200 days after the halving consolidation and fully resynchronize with historical halving cycles, bitcoin would need to replicate its mid-2023 reaccumulation range, which lasted 224 days before a new uptrend emerged. Rekt concluded:
Overall, the duration of this current reaccumulation range will determine the remaining acceleration in this cycle and will ultimately influence where bitcoin will ultimately peak in its bull market.
The largest cryptocurrency, with a market capitalization of $1.2 billion, is currently trading at $64,400, showing minimal fluctuations compared to Thursday's price movements.
Recently, bitcoin has encountered resistance at the $66,000 level, hampering its ability to consolidate above this threshold. Conversely, the $63,400 level may serve as a base of support for the cryptocurrency in case of further downside volatility over the weekend.
Featured image from Shutterstock, chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
