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Closely followed crypto analyst Rekt Capital recently provided an in-depth analysis of Bitcoin‘s (BTC) current market dynamics, following the last block reward halving which appears to be a long reaccumulation phase. The analyst emphasized the transition from a pullback phase before the block reward halving to a significant reaccumulation period. This phase, characterized by sideways movements and consolidation, plays a crucial role in shaping the groundwork for a potential upward rally in Bitcoin’s price.
Reaccumulation Phase
Rekt Capital explained the key support and resistance levels, noting that Bitcoin is currently consolidating within a range, with about $70,000 serving as the upper resistance and around $61,000 as the lower support.
Drawing parallels with historical models, the analyst referred to reaccumulation ranges observed after the block reward halvings in 2020 and 2016. Accordingly, it took 160 days for Bitcoin to exit reaccumulation after the 2020 halving, while a similar period of 154 days was observed in 2016.
Considering these historical precedents, Rekt Capital speculated that the ongoing reaccumulation phase could last 150 days or more, possibly 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 mitigate the accelerated pace seen in the pre-halving stage.
Furthermore, Rekt Capital underscored the importance of Bitcoin undergoing phases of underperformance followed by overperformance, emphasizing the necessity of the current reaccumulation phase to balance the rapid acceleration seen before the block reward halving.
Setting a More Sustainable Trajectory for the Bull Market
The analyst’s analysis concluded with a call for caution and patience, noting that despite achieving significant milestones before the block reward halving, synchronizing with historical trends might require similar significant achievements post-halving. Rekt Capital added that a long reaccumulation phase could facilitate achieving this balance and potentially steer towards a more sustainable trajectory for the bull market.
