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Historical patterns indicate Bitcoin breakout imminent

Historical patterns indicate Bitcoin breakout imminent

GrafaGrafa2024/09/24 06:05
By:Mahathir Bayena

Recent insights from pseudonymous crypto analyst Rekt Capital suggest that Bitcoin (CRYPTO:BTC) may be on the verge of a significant price breakout.

In a post on X, he referenced historical market cycles, noting that Bitcoin has historically broken out from its reaccumulation range approximately 154 to 161 days after a halving event.

The most recent Bitcoin halving occurred on April 20, 2024, which marks 157 days since the event.

This places the cryptocurrency within the predicted breakout timeframe.

Rekt Capital stated, “History suggests it is breakout time for Bitcoin,” implying that similar patterns from previous cycles could repeat.

In past cycles, Bitcoin demonstrated clear breakout trends following halving events.

For example, in 2016, Bitcoin broke out 154 days post-halving, while in 2020, it did so 161 days later.

Although Rekt Capital cautioned that historical patterns do not always replicate precisely, he emphasised that current indicators suggest a potential breakout within the next few days.

Furthermore, he noted that September has historically been a bearish month for Bitcoin, yet this year, the cryptocurrency has posted a roughly 9% gain, outpacing its second-best September in 2016, when it recorded a 6% increase.

Rekt Capital also pointed out that October has traditionally yielded positive returns for Bitcoin, with the fourth quarter often presenting significant gains.

Notably, Bitcoin saw remarkable returns in October 2017 and 2021, with increases of 48% and 40%, respectively.

Bitcoin has remained relatively stable for the past six months but needs to surpass its previous peak of $73,738 to enter a new price discovery phase.

At the time of writing, the Bitcoin (BTC) price was $63,164.19.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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