Bitcoin set for potential breakout this week

According to one analyst, Bitcoin could be on its way to a new record if it breaks out of its accumulation phase this Saturday.

Famous investor Rekt Capital stated in his September 14 X post that if historical patterns repeat, Bitcoin could soon break out of the reaccumulation range it has been trading in since the beginning of March.

The analyst noted that Bitcoin historically exits the reaccumulation phase 154 to 161 days after the halving event.

The Bitcoin halving event is when the reward for mining new Bitcoin blocks is halved, slowing down the rate at which new Bitcoins are created. This occurs approximately every four years to maintain Bitcoin’s fixed supply of 21 million.

The last halving occurred 157 days ago, on April 20, 2024, which is right within the historical window for a potential exit, according to Rekt Capital.

Bitcoin has been trading 157 days since halving | Source: X/RektCapital

In a previous X post, the analyst explained that in both the 2016 and 2020 halving cycles, Bitcoin broke out of the accumulation range after 154 and 161 days, respectively. He explained that history does not always follow a precise pattern, but the current situation is consistent with previous breakout periods.

“History suggests it’s ‘Breakout Time’ for Bitcoin,” Rekt Capital said, noting that if this pattern continues, Bitcoin could break out of its reaccumulation range in the next few days.

The analysis also noted that September generally showed a downward trend for Bitcoin, and that this cycle fell short of expectations.

Since the beginning of September, Bitcoin (BTC) has gained 9.8%, from a starting price of $58,147 to a daily high of $63,869 at the time of reporting on September 24. This increase marked Bitcoin’s best-performing September in over a decade, and stands in stark contrast to the eight down Septembers it has endured in the past 11 years.

Looking ahead, increased institutional interest could play a significant role in pushing Bitcoin’s price higher in the long term. Bloomberg analyst Eric Balchunas expects major Bitcoin ETF issuers like BlackRock to increase their Bitcoin holdings by the end of 2025.

The logic goes like this: As more investors become interested in Bitcoin ETFs, issuers are forced to purchase more Bitcoin to meet demand, further tightening the supply.

Bitcoin was trading at $63,623 as of press time and is up 7.7% in the past week.