Analyst Predicts Imminent Bitcoin Breakout Based on Historical Patterns
A breakout for Bitcoin could be just days away, according to a popular pseudonymous crypto market analyst, Rekt Capital.
The analyst suggests that Bitcoin and the broader crypto markets may be nearing a breakout if previous market cycles repeat themselves.
In a post on Sept. 24, Rekt Capital highlighted that in previous cycles, Bitcoin has historically broken out of its reaccumulation range between 154 and 161 days following its halving event.
This yearâs halving took place on April 20, which was 157 days ago, putting Bitcoin right within this typical breakout window.
Referencing historical data, Rekt Capital noted that Bitcoin broke out of its range-bound accumulation phase 154 days after the 2016 halving, and 161 days after the 2020 halving.
If Bitcoin follows a similar path this cycle, he predicts, âBitcoin should be breaking out from its reaccumulation range within the next few days, possibly this week.â
While historical patterns donât always follow an exact blueprint, Rekt Capitalâs analysis suggests that a similar breakout could be on the horizon.
September has traditionally been a bearish month for Bitcoin, but according to Rekt Capital, this yearâs September has defied expectations.
On Sept. 21, he pointed out that Bitcoin posted its highest-ever average return for September in this cycle, rising about 9%. This beats its previous best performance in September 2016 when it gained 6%.
Nine of the last eleven Octobers have delivered positive returns, with major bull runs occurring in October 2017 and October 2021, where Bitcoin saw gains of 48% and 40%, respectively.
Although Bitcoin has been trading sideways for the past six months, itâs now only 14.6% away from its previous all-time high of $73,738.
A move past that level would open the door to a new price discovery range. At the time of writing, Bitcoin was priced at $62,863, having hit a monthly peak of $65,600 on Sept. 23.