Bitcoin to $100K? Analyst Says Halving Effect Could Spark Massive Rally
Anjali Belgaumkar17 Oct 20242 min read
According to popular analyst Rekt Capital, the current Bitcoin halving event is not yet reflected in the price. Historically, Bitcoin experiences significant price growth several months following a halving. This trend has been observed in past cycles: 2012, 2016, and 2020.
Historical Price Patterns
The analyst said that Bitcoin tends to experience resistance at previous all-time highs. These levels often become points of accumulation before transitioning into a strong upward trend. In past cycles, particularly in 2016 and 2020, there was accumulation just below these resistance levels, followed by a parabolic price surge.
In the current cycle, the old all-time high is now acting as a support level after previously acting as resistance. This shift is important, as it sets the stage for potential price increases.
Length of Reaccumulation Phase
Currently, BTC is in an extended reaccumulation phase, lasting over 185 days, which is longer than previous cycles. In 2020, a breakout into the parabolic phase occurred 160 days post-halving.
To trigger the next parabolic phase, Bitcoin needs to break through the recent resistance levels established in the last few months. Recent price actions show consistent movements between established range lows and highs, indicating that a breakout could be imminent. A weekly close above the current resistance would be a significant signal of a potential rally.
This reaccumulation phase offers a prime opportunity to accumulate before the market transitions into a parabolic uptrend. Historically, significant price increases follow this accumulation phase, making it a crucial period for investors.
Looking Ahead
While previous cycles showed major gains post-halving, it’s essential to manage expectations. The returns we might see in this cycle are likely to be lower than those in the past. He said that a realistic outlook suggests potential price movements toward the 100K range, but investors should remain cautious.
