A cryptocurrency expert predicts a possible imminent Bitcoin breakout based on previous market cycles and current market conditions.
Historical Cycles and Bitcoin Breakouts
Analyst Rekt Capital noted that in previous market cycles, Bitcoin historically broke out from its reaccumulation range between 154 and 161 days after halving. This cycle's halving event occurred on April 20, 157 days ago, so we are within the breakout time frame.
Current Market Analysis
During the 2016 halving year, BTC broke out of the range-bound accumulation phase 154 days after the halving, while in 2020, it broke out 161 days after the halving. While history doesn't always repeat in a copy-paste manner, the analyst believes Bitcoin should be breaking out from its reaccumulation range in the next few days. Additionally, it was noted that September is usually bearish for Bitcoin, while the fourth quarter generally sees better returns.
Future Forecast
The analyst stated that Bitcoin has posted its highest-ever average monthly return for September in this cycle, at around 9%, beating the previous record of 6% in September 2016. Nine of the past eleven Octobers have seen positive returns for Bitcoin, with significant gains in bullish months such as October 2017 and 2021, posting increases of 48% and 40%, respectively.
The analyst believes Bitcoin is at a critical juncture where a breakout is possible in the coming days, despite the current market volatility.
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