Key Points
- Bitcoin might reach a new all-time high if it breaks out of its reaccumulation phase this Saturday, says an analyst.
- Historical patterns indicate Bitcoin typically exits its reaccumulation phase between 154 and 161 days after a halving event.
An analyst has suggested that Bitcoin could be on the verge of hitting a new all-time high if it breaks free from its current reaccumulation phase this coming Saturday.
The prediction was made by popular trader Rekt Capital in a post on Sept. 14. The trader emphasized that Bitcoin could soon escape its reaccumulation range, where it has been since early March, should history repeat itself.
Historical Patterns and Bitcoin Halving Events
Rekt Capital pointed out that Bitcoin has historically exited its reaccumulation phase between 154 and 161 days following a halving event. A halving event is when the reward for mining new Bitcoin blocks is halved, reducing the rate at which new Bitcoins are created. This event happens approximately every four years to maintain Bitcoin’s fixed supply of 21 million.
The most recent halving occurred on April 20, 2024, which is 157 days ago. This is within the historical window for a potential breakout, according to the trader.
In an earlier post, Rekt Capital revealed that in both the 2016 and 2020 halving cycles, Bitcoin broke out of its accumulation range after 154 and 161 days, respectively. While history doesn’t always follow an exact pattern, the current situation aligns with previous breakout periods.
Bitcoin’s Performance and Future Projections
Rekt Capital noted that September is typically a bearish month for Bitcoin, but this cycle has defied expectations. Since the start of September, Bitcoin has increased by 9.8%, climbing from its initial price of $58,147 to reach an intraday high of $63,869 on Sept. 24. This makes it Bitcoin’s best-performing September in over a decade, contrasting with the eight bearish Septembers it has endured in the past 11 years.
Looking forward, rising institutional interest may play a significant role in driving Bitcoin’s price higher in the long run. Bloomberg analyst Eric Balchunas expects major Bitcoin ETF issuers like BlackRock to increase their Bitcoin holdings by the end of 2025. This is because as more investors engage with Bitcoin ETFs, issuers must buy additional Bitcoin to meet demand, further tightening supply.
At the time of writing, Bitcoin was trading at $63,623, up 7.7% over the past week.
