Crypto analyst Rekt Capital recently conducted a detailed analysis of the current market dynamics of Bitcoin following the block reward halving. The analyst highlighted the shift from a pullback phase to a significant reaccumulation period, which is crucial in laying the foundation for a potential upward rally in Bitcoin’s price.
In terms of support and resistance levels, Rekt Capital explained that Bitcoin is currently consolidating within a range, with $70,000 as the upper resistance and $61,000 as the lower support. Drawing parallels with historical patterns, the analyst referred to reaccumulation ranges observed after the block reward halvings in 2020 and 2016. It took Bitcoin 160 days to exit reaccumulation 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, potentially 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 help balance the rapid acceleration seen before the halving.
Rekt Capital also emphasized the importance of Bitcoin experiencing phases of underperformance followed by overperformance, highlighting the need for the current reaccumulation phase to counterbalance the rapid growth seen before the halving.
Overall, the analyst concluded with a call for caution and patience, noting that while significant milestones were achieved before the halving, aligning with historical trends may require similar achievements post-halving. A prolonged reaccumulation phase could help achieve this balance and steer the bull market towards a more sustainable trajectory.
Disclaimer: The information provided in this article should not be considered investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.