Bitcoin [BTC] is displaying similarities with its behavior post-halving in 2020, hinting at a potential parabolic surge in 2024.
Analyst Rekt Capital has noted that Bitcoin’s price movements in 2024 closely resemble those observed following the 2020 Halving event.
The focus is on the 161-day period post-halving, historically associated with significant price uptrends.
Rekt Capital’s analysis has underscored the parallels between Bitcoin’s post-halving performance in 2020 and that expected in 2024.
In 2020, Bitcoin witnessed a sharp surge after breaking out of its Re-Accumulation phase, marking the beginning of a major rally.
This breakout was defined by heightened buying pressure and a shift in market sentiment, propelling prices to new records.
In 2024, Bitcoin finds itself post the crucial 161-day mark post-halving, hinting at the potential for a comparable breakout.
At current rates, Bitcoin is trading at $63,439, showing a 0.60% increase in the past 24 hours and a 7.51% rise over the previous week.
This upward movement echoes patterns observed in 2020, reinforcing expectations of another substantial rally.
Noteworthy Resistance and Support Levels to Monitor
Bitcoin’s price is approaching pivotal resistance levels that must be breached to confirm a breakout.
The recent climb of BTC from $56,000 to $63,000 shows robust bullish momentum, yet the resistance at these thresholds poses a significant challenge.
The support levels, flagged on the chart, indicate strong buying interest, reminiscent of the setup seen in 2020.
These support zones, highlighted by orange circles, offer a robust foundation that could stabilize Bitcoin’s price in case of a pullback, maintaining the overarching bullish sentiment.
Surge in Bitcoin Accumulation as Traders Anticipate a Breakout
The market dynamic surrounding Bitcoin implies a potential imminent breakout. The price fluctuated between $58,351 and $63,239 from the 15th to the 22nd of September, with a notable dip on September 20th at $59,573 before a rebound.
On-chain data also signals accumulation trends, with net BTC outflows totaling -977.58 BTC in the last 24 hours and -469.18 BTC over the past week, suggesting decreased selling pressure.
These outflows imply that market participants are holding onto their BTC, positioning for potential price hikes.
As per DefiLlama data, the Total Value Locked (TVL) in Bitcoin-related projects stands at $573.26 million, with 24-hour fees amounting to $373,571 and active addresses reaching 595,289.
These metrics highlight ongoing market dynamics that could fuel further price uptrends, supporting the notion of a sustained upward trajectory as observed in previous cycles.
Bitcoin’s market activity reflects continued investor engagement, evident from recent trading volumes and on-chain data.