Bitcoin (BTC) has entered the final phase of its halving cycle, according to analysis by Rekt Capital. Bitcoin recently broke out of its consolidation range, signaling an imminent transition to a parabolic uptrend. Historically, this phase has fueled Bitcoin’s most significant price increases, often lasting more than a year.
Bitcoin Halving and Market Phases
Rekt Capital outlines three distinct phases of the Bitcoin halving cycle. The first phase is the pre-halving retracement phase, which has historically seen Bitcoin fall significantly. In 2024, Bitcoin experienced two 18% retracements before the halving. These retracements set the stage for the second phase, known as reaccumulation.
The accumulation phase consolidates Bitcoin’s price within a specific range, allowing the market to stabilize. This phase is important because it forms the foundation for a parabolic uptrend. Investors often become impatient during this phase because price volatility remains low.
Transition to Parabolic Growth
Bitcoin’s breakout from its consolidation range signals the start of a parabolic phase. This phase has historically seen rapid growth, pushing Bitcoin to new all-time highs. According to Rekt Capital, previous parabolic phases have lasted around 385 days. However, current market conditions suggest that an accelerating cycle could shorten this period.
Bitcoin is priced at $75,982.92, with a market capitalization of over $1.5 trillion. Despite a slight 24-hour decline of 0.03%, bullish sentiment prevails in the market. The Crypto Fear and Greed Index remains steady at 75, indicating strong investor confidence. Additionally, Bitcoin dominance has dropped by 3.65%, potentially signaling a shift in focus towards altcoins.
Institutional activity has surged, with CME BTC futures and options interest rising significantly. Furthermore, Bitcoin exchange balances are falling, a bullish indicator as investors move their holdings to cold storage.
Price forecast and market outlook
Changellyblog analysts predict that Bitcoin could reach a minimum of $59,821.02 by December 2024. The maximum expected peak for the month is $84,052.07, with an average transaction value of $71,936.55. These predictions are in line with historical trends after halvings, which have consistently led to significant price increases.
Bitcoin’s strong fundamentals, coupled with reduced selling pressure, point to a bullish outlook in the coming months. Bitcoin’s trajectory suggests that it is on the verge of a parabolic uptrend. With historical patterns and market dynamics converging, the stage is ripe for significant growth.
