Bitcoin, the world’s most popular cryptocurrency, is poised for a potential breakout this week, according to analyst predictions. The digital currency could be on track to reach a new all-time high if it breaks out of its reaccumulation phase this Saturday, as suggested by prominent trader Rekt Capital.
In a recent analysis, Rekt Capital pointed out that Bitcoin has historically exited its reaccumulation phase between 154 and 161 days after a halving event. A Bitcoin halving event occurs approximately every four years and involves cutting the reward for mining new Bitcoin blocks in half, thereby reducing the rate at which new Bitcoins are created. The most recent halving event took place on April 20, 2024, exactly 157 days ago, falling within the historical window for a potential breakout.
Drawing parallels to previous halving cycles in 2016 and 2020, Rekt Capital highlighted that Bitcoin broke out of its accumulation range after 154 and 161 days, respectively. While history does not always repeat itself exactly, the current situation aligns with previous breakout periods, leading the analyst to suggest that it is “Breakout Time” for Bitcoin.
Despite September typically being a bearish month for Bitcoin, the cryptocurrency has defied expectations this year. Since the beginning of the month, Bitcoin has seen a 9.8% increase, climbing from $58,147 to an intraday high of $63,869 on September 24. This marks Bitcoin’s best-performing September in over a decade, in stark contrast to the bearish trends seen in previous years.
Looking ahead, rising institutional interest in Bitcoin may further drive its price higher in the long term. Bloomberg analyst Eric Balchunas predicts that major Bitcoin ETF issuers like BlackRock will increase their Bitcoin holdings by the end of 2025. As more investors engage with Bitcoin ETFs, issuers will need to buy additional Bitcoin to meet demand, thereby tightening supply and potentially pushing prices up.
At the time of reporting, Bitcoin was trading at $63,623, up 7.7% over the past week. With the potential for a breakout looming, investors and enthusiasts are eagerly watching to see if Bitcoin will indeed reach new heights in the coming days.