Renowned crypto analyst Rekt Capital recently conducted an extensive examination of Bitcoin’s current market dynamics following the recent block reward halving. According to the analyst, this event has triggered a prolonged reaccumulation phase, which is crucial in laying the foundation for a potential upward rally in Bitcoin’s price.
During this reaccumulation phase, Bitcoin is currently consolidating within a range, with an upper resistance level of approximately $70,000 and a lower support level of around $61,000. Rekt Capital drew parallels with historical patterns observed after the block reward halvings in 2020 and 2016. In both cases, it took Bitcoin around 160 days to exit the reaccumulation phase.
Based on these historical precedents, Rekt Capital speculated that the ongoing reaccumulation phase could last for at least 150 days, potentially extending until the end of September or early October. The analyst suggested that a reaccumulation period exceeding 200 days would align Bitcoin’s market cycle with historical norms and help mitigate the accelerated 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 crucial in balancing the rapid acceleration witnessed before the block reward halving.
In conclusion, the analyst urged caution and patience, noting that while Bitcoin has achieved significant milestones before the halving, it may need to achieve similar milestones post-halving to align with historical trends. A prolonged reaccumulation phase could help achieve this balance and set a more sustainable trajectory for the bull market.
Disclaimer: This article does not provide investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.
