Rekt Capital has suggested that the Bitcoin and crypto markets may be on the brink of a breakout if historical cycle patterns are replicated.
On September 24, analyst Rekt Capital noted in a post on X that Bitcoin has historically emerged from its reaccumulation range between 154 and 161 days following the halving in previous market cycles.
Rekt Capital Suggests it’s BTC Breakout Time
He stated that the BTC halving event of this cycle occurred on April 20, 157 days ago, and that we are currently within the breakout time frame. He then added:
“History suggests it is ‘breakout time’ for Bitcoin.”
In the 2016 halving year, BTC emerged from the range-bound accumulation phase 154 days following the halving, whereas, in 2020, it did so 161 days following the halving of that year.
Rekt Capital noted that history does not always repeat itself in a copy-paste manner; however, if it were to do so in this cycle:
“Then Bitcoin should be breaking out from its re-accumulation range in the next handful of days, this week.”
Additionally, Rekt Capital has compared periodic returns, noting that Bitcoin typically experiences negative returns in September and positive returns in the fourth quarter.
Conversely, on September 21, he declared, “Who would have anticipated that Bitcoin would generate its most significant average return for September in this cycle?”
This month, BTC generated approximately 9% in revenue, surpassing its second-best September of 2016, which generated 6%.
Furthermore, Bitcoin has experienced positive returns in nine of the last eleven October, with bull market months such as October 2017 and 2021 experiencing even more significant gains of 48% and 40%, respectively.
In order to enter a new price discovery range, Bitcoin must surpass its previous peak of $73,738, although it has been trading sideways for the past six months. It is only 14.6% away from that threshold.
CoinGecko reports that the price of Bitcoin (BTC) has decreased by 1.7% in the past 24 hours, currently at $62,863. At the time of writing. On September 23, it reached a monthly high of $65,600.
