In a recent analysis, cryptocurrency analyst Rekt Capital delved into Bitcoin’s current market dynamics, shedding light on what could be an extended reaccumulation phase following the latest halving event. The analyst stressed that Bitcoin has transitioned from its pre-halving retracement phase into a reaccumulation period. This phase, characterized by sideways consolidation, is crucial for setting the stage for the next upward rally in Bitcoin’s price.
Rekt Capital revealed key support and resistance levels, indicating that Bitcoin is currently consolidating within a range with approximately $70,000 as the upper resistance and $66,000 as the lower support.
Drawing comparisons to historical patterns, the analyst referenced the reaccumulation ranges observed after the 2020 and 2016 halving events. In 2020, it took 160 days for Bitcoin to move from the halving event to a breakout, while in 2016, a similar range lasted 154 days.
Considering these historical precedents, Rekt Capital speculated that the ongoing reaccumulation phase could last up to 150 days or even longer, possibly stretching into late September or early October. The analyst suggested that a reaccumulation period of over 200 days might 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 experiencing a period of underperformance followed by overperformance, highlighting the need for the current reaccumulation phase to balance out the rapid acceleration seen before the halving.
The analysis concluded with a call for caution and patience, noting that while Bitcoin had achieved remarkable milestones in the pre-halving period, a similarly significant feat might be required post-halving to synchronize with historical trends. The analyst suggested that an extended reaccumulation phase could catalyze achieving this equilibrium, potentially leading to a more sustainable bull market trajectory.
