Bitcoin may be on the verge of reaching a new all-time high if it manages to break free from its reaccumulation phase this Saturday, according to an analyst’s insights.
In a post on X dated September 14, well-known trader Rekt Capital suggested that Bitcoin is nearing a potential breakout from its reaccumulation zone, where it has been fluctuating since early March, provided historical trends hold true.
The analyst noted that Bitcoin has typically emerged from its reaccumulation phase between 154 and 161 days following a halving event. A Bitcoin halving occurs when the reward for mining new blocks is halved, effectively decreasing the rate at which new Bitcoins are generated. This event takes place approximately every four years to preserve Bitcoin’s capped supply of 21 million coins.
The most recent halving took place on April 20, 2024, marking it 157 days ago—squarely within the historical timeframe for a possible breakout, as highlighted by Rekt Capital.
Bitcoin is now 157 days post-halving event | Source: X/RektCapital
In a prior post, the analyst pointed out that during the halving cycles of 2016 and 2020, Bitcoin broke out of its accumulation phase after 154 and 161 days, respectively. While he acknowledged that history doesn’t always adhere to a precise timeline, the current conditions appear to echo previous breakout scenarios.
“Historical patterns indicate it is ‘Breakout Time’ for Bitcoin,” Rekt Capital remarked, adding that if this trend continues, Bitcoin could exit its reaccumulation phase in the coming days.
Additionally, it’s worth noting that although September is generally a bearish month for Bitcoin, this cycle has bucked that trend. Since the beginning of September, Bitcoin (BTC) has surged by 9.8%, rising from an initial price of $58,147 to an intraday peak of $63,869 on September 24, as of the time of this report. This performance marks Bitcoin’s strongest September in over a decade, a notable contrast to the eight bearish Septembers it has experienced in the past eleven years.
Looking toward the future, increasing institutional interest could significantly contribute to elevating Bitcoin’s price over the long term. Bloomberg analyst Eric Balchunas anticipates that major Bitcoin ETF issuers, such as BlackRock, will ramp up their Bitcoin holdings by the end of 2025. The reasoning behind this is that as more investors engage with Bitcoin ETFs, issuers will need to purchase additional Bitcoin to meet growing demand, further constraining supply.
At the time of reporting, Bitcoin was trading at $63,623, reflecting a 7.7% increase over the past week.