Bitcoin (BTC) is displaying indications of replicating its behavior following the 2020 halving, hinting at the potential for a parabolic surge in 2024.
Renowned crypto analyst Rekt Capital has noted that Bitcoin’s price movement in 2024 bears resemblance to the market dynamics witnessed post-2020 Halving.
The spotlight is on the period of 161 days post-halving, historically associated with notable price upticks.
Rekt Capital’s study has underscored the similarities between Bitcoin’s price actions after halving in 2020 and 2024.
Back in 2020, Bitcoin witnessed a surge subsequent to breaking out of its Re-Accumulation range, signaling the commencement of a significant rally.
This breakout was characterized by heightened buying activities and a change in market sentiment, driving prices to record highs.
In 2024, Bitcoin is positioned right after the crucial 161-day post-halving window, hinting at the likelihood of a comparable breakout.
At present, Bitcoin is trading at $63,439 with a 0.60% increase in the last 24 hours and a 7.51% rise over the past week.
This upward trend echoes the pattern witnessed in 2020, reinforcing expectations of another robust rally.
Critical Levels of Resistance and Support to Monitor
Bitcoin’s price is nearing important resistance thresholds that must be surpassed to confirm a breakout.
The recent surge of BTC from $56,000 to $63,000 reflects strong bullish momentum, yet the resistance at these levels poses a significant challenge.
The support levels, identified on the chart, signal substantial buying interest, reminiscent of the setup in 2020.
These support zones, indicated by orange circles, form a sturdy base that could potentially stabilize Bitcoin’s price in case of a pullback, maintaining an overall bullish outlook.
Rise in Bitcoin Accumulation as Traders Anticipate a Breakout
The market conditions for Bitcoin suggest a looming breakout. The price fluctuated between $58,351 and $63,239 from September 15th to the 22nd, with a notable dip to $59,573 on September 20th before bouncing back.
On-chain data also points towards accumulation trends, with net BTC outflows of -977.58 BTC in the last 24 hours and -469.18 BTC over the previous seven days, indicating a reduction in selling pressure.
This trend implies that market players are holding onto their BTC, potentially positioning themselves for further price upswings.
Based on DefiLlama figures, the Total Value Locked (TVL) in Bitcoin-related ventures stood at $573.26 million, with 24-hour fees amounting to $373,571 and active addresses reaching 595,289.
These statistics mirror the ongoing market activities that could act as a driver for additional price hikes, supporting the concept of a sustained upward trajectory as observed in past cycles.
Bitcoin’s market dynamics reflect enduring investor interest, as highlighted by recent trading volumes and on-chain details.