Bitcoin set for potential breakout this week

Bitcoin could be on the path to a new all-time high if it breaks out of its reaccumulation phase this Saturday, according to an analyst.

In a Sept. 14 X post, prominent trader Rekt Capital indicated that Bitcoin could soon break out of its reaccumulation range, where it has been trading since early March if historical patterns repeat.

The analyst pointed out that Bitcoin has historically exited its reaccumulation phase between 154 and 161 days after a halving event.

A Bitcoin halving event is when the reward for mining new Bitcoin blocks is cut in half, reducing the rate at which new Bitcoins are created. This occurs once approximately every four years to maintain Bitcoin’s fixed supply of 21 million.

The latest halving happened on April 20, 2024, 157 days ago—right within the historical window for a potential breakout, according to Rekt Capital.

In an earlier X post, the analyst revealed that in both the 2016 and 2020 halving cycles, Bitcoin broke out of its accumulation range after 154 and 161 days, respectively. He clarified that while history doesn’t always follow an exact pattern, the current situation aligns with previous breakout periods.

“History suggests it is ‘Breakout Time’ for Bitcoin,” Rekt Capital said, noting that if the pattern holds, Bitcoin could break from its reaccumulation range within the next few days.

The analysis also pointed out that while September is typically a bearish month for Bitcoin, this cycle has defied expectations. 

Since the start of September, Bitcoin (BTC) has increased by 9.8%, climbing from its initial price of $58,147 to reach an intraday high of $63,869 on Sept. 24 at the time of reporting. This rise made it Bitcoin’s best-performing September in over a decade, starkly contrasting to the eight bearish September it has endured in the past 11 years.

Looking ahead, rising institutional interest may also play a crucial role in driving Bitcoin’s price higher over the long haul. Bloomberg analyst Eric Balchunas expects major Bitcoin ETF issuers like BlackRock to increase their Bitcoin holdings by the end of 2025.

The rationale is that as more investors engage with Bitcoin ETFs, issuers must buy additional Bitcoin to meet demand, further tightening supply.

Bitcoin was exchanging hands at $63,623 at press time, up 7.7% over the past week.