Rekt Capital, a prominent cryptocurrency analyst, recently conducted a detailed analysis of the current market dynamics of Bitcoin (BTC) following the block reward halving. The analyst highlighted the shift from a pullback phase to a significant reaccumulation period, which is characterized by sideways movements and consolidation. This phase plays a crucial role in laying the foundation for a potential upward rally in Bitcoin’s price.
During the reaccumulation phase, Bitcoin is currently consolidating within a range, with the upper resistance at around $70,000 and the lower support at approximately $61,000. By drawing parallels with historical patterns, Rekt Capital referenced reaccumulation ranges observed after the block reward halvings in 2020 and 2016. It took 160 days for Bitcoin to exit the reaccumulation phase after the 2020 halving, while a similar period of 154 days was observed in 2016.
Based on these historical precedents, Rekt Capital speculated that the ongoing reaccumulation phase could last 150 days or more, possibly extending until the end of September or early October. The analyst suggested that a reaccumulation period exceeding 200 days could align Bitcoin’s market cycle with historical norms and mitigate the rapid pace seen before the halving.
Rekt Capital also emphasized the importance of Bitcoin experiencing phases of underperformance followed by overperformance. The current reaccumulation phase is necessary to balance the rapid acceleration seen before the block reward halving.
In conclusion, Rekt Capital urged caution and patience, noting that while significant milestones were achieved before the halving, aligning with historical trends may require similar achievements post-halving. A long reaccumulation phase could help achieve this balance and potentially lead to a more sustainable trajectory for the bull market.
Disclaimer: The information provided in this article is not intended as investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.
