Bitcoin
How long will Bitcoin’s reaccumulation phase last?
In a recent analysis, cryptocurrency analyst Rekt Capital investigated the current dynamics of the Bitcoin market, shedding light on what could be a prolonged reaccumulation phase following the last halving event. The analyst highlighted that Bitcoin has transitioned from its pre-halving retracement phase to a period of reaccumulation. This phase, characterized by sideways consolidation, is crucial in setting the stage for the next upward rally in the Bitcoin Price.
Rekt Capital has revealed key support and resistance levels, indicating that Bitcoin is currently consolidating within a range with approximately $70,000 as upper resistance and $66,000 as lower support.
Making comparisons to historical patterns, the analyst referred to the reaccumulation intervals observed after the halving events of 2020 and 2016. In 2020, it took 160 days for Bitcoin to move from the halving event to a breakout, while in 2016, a similar gap lasted 154 days.
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Considering these historical precedents, Rekt Capital speculated that the ongoing reaccumulation phase could last up to 150 days or even longer, possibly extending until late September or early October. The analyst suggested that a reaccumulation period of over 200 days could be ideal for Bitcoin’s market cycle to realign with historical norms and mitigate the accelerated pace witnessed in the pre-halving period.
Furthermore, Rekt Capital explained the importance of Bitcoin going through a period of underperformance followed by outperformance, highlighting the need for the current reaccumulation phase to balance the rapid acceleration seen before the halving.
The analysis concluded with a call for caution and patience, noting that while Bitcoin achieved notable milestones in the pre-halving period, an equally significant feat may be needed post-halving to synchronize with historical trends. The analyst suggested that a prolonged reaccumulation phase could catalyze the achievement of this balance, potentially leading to a more sustainable bull market trajectory.
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