Timing The Breakout: When Will Bitcoin Escape The Post-Halving Consolidation?
April 26 2024 - 7:00PM
NEWSBTC
Bitcoin (BTC), the largest cryptocurrency in the market, has been
trading within a re-accumulation range between the $59,000 and
$70,000 price levels for the past month and a half. Crypto
analyst Rekt Capital recently shared its perspective on this phase
and its potential duration, drawing from historical patterns and
data in a post on social media platform X (formerly Twitter).
Related Reading: Is SUI Sinking? TVL Tanks As Crypto Price Fails To
Keep Afloat Breakout Timing And Historical Patterns According to
Rekt’s analysis, Bitcoin tends to experience a re-accumulation
range following the Halving event, which occurs every four years to
counteract any inflationary effect on Bitcoin by lowering the
reward amount for miners and maintaining scarcity.
Historically, This consolidation phase lasts up to 150 days before
Bitcoin breaks into a parabolic uptrend. Based on this pattern, if
Bitcoin continues to consolidate for the next 150 days, Rekt
suggests a breakout would be expected in September 2024. The ideal
duration of a re-accumulation range is crucial in determining
Bitcoin’s future trajectory. Rekt Capital noted that when Bitcoin
reached a new all-time high (ATH) of $73,700 in mid-March, it
accelerated its cycle by 260 days. However, with over 49 days of
consolidation, the acceleration has reduced to approximately 210
days. Resetting The Bitcoin Halving Cycle Repeating historical
trends, where Bitcoin consolidates for 150 days after the Halving,
would still indicate an acceleration in the current cycle, albeit
by a lesser extent of 60 days. Nevertheless, Rekt contends
that Bitcoin would ideally need to consolidate for at least 210
days to fully resynchronize with its historical Halving cycles and
reset the current acceleration in this cycle to 0. This would bring
the rate of acceleration to 0 days and potentially lead to a
breakout around November 2024. Related Reading: Analysts Call It:
XRP Primed For A 700% Surge – Details The analyst further suggested
that to achieve a 200+ day post-Halving consolidation and fully
resynchronize with historical Halving cycles, Bitcoin would need to
replicate its mid-2023 re-accumulation range, which lasted 224 days
before a new uptrend emerged. Rekt concluded: Overall, how long
this current Re-Accumulation Range will last will dictate the
remaining acceleration in this cycle and ultimately influence where
Bitcoin will finally 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, hindering its ability
to consolidate above this threshold. Conversely, the $63,400 level
may serve as a support base for the cryptocurrency in the event of
heightened downward volatility over the weekend. Featured image
from Shutterstock, chart from TradingView.com
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