Bitcoin halving events have historically been a significant driver of price growth for the cryptocurrency. Popular analyst Rekt Capital recently pointed out that the current Bitcoin halving event has not yet been fully reflected in the price. Looking back at past cycles in 2012, 2016, and 2020, Bitcoin has typically experienced substantial price increases several months following a halving.
One key observation made by the analyst is that Bitcoin tends to encounter resistance at previous all-time highs, which then often act as points of accumulation before a strong upward trend emerges. This pattern has been particularly evident in the 2016 and 2020 cycles, where accumulation below resistance levels was followed by a parabolic price surge. In the current cycle, the old all-time high has now become a support level after previously serving as resistance, setting the stage for potential price increases.
Currently, Bitcoin is in an extended reaccumulation phase that has lasted over 185 days, longer than in previous cycles. In the 2020 cycle, a breakout into a parabolic phase occurred 160 days post-halving. To trigger the next parabolic phase, Bitcoin needs to surpass recent resistance levels established in the last few months. Recent price movements have shown a consistent range between established lows and highs, indicating a potential breakout on the horizon. A weekly close above the current resistance would be a significant signal of a potential rally.
This reaccumulation phase presents a prime opportunity for investors to accumulate before the market transitions into a parabolic uptrend. Historically, significant price increases have followed this accumulation phase, making it a crucial period for investors looking to capitalize on future gains.
Looking ahead, while past cycles have seen major gains post-halving, it’s important to manage expectations. The analyst suggests that potential price movements in this cycle may be towards the $100K range, but investors should approach with caution. Realistic expectations and careful monitoring of market trends will be key in navigating the volatile cryptocurrency landscape.