- Analyst Rekt Capital suggests Bitcoin may break out soon based on historical halving cycle patterns.
- Bitcoin’s price has risen by 9% in September, surpassing previous gains in the same month from past years.
- October historically delivers positive returns for Bitcoin, with significant gains recorded in 2017 and 2021.
Bitcoin’s potential for a significant breakout is gathering attention as historical patterns from previous halving cycles suggest an upward movement may be imminent. Analyst Rekt Capital recently noted on Sept. 24 that in past market cycles, Bitcoin typically breaks out of its reaccumulation phase 154 to 161 days after the halving event.
With this cycle’s halving having occurred on April 20, Bitcoin has now entered the expected breakout window, according to Rekt Capital. He pointed out that in 2016 and 2020, Bitcoin broke out 154 and 161 days post-halving, respectively. The analyst believes that, while historical trends are not always perfectly replicated, Bitcoin could be approaching a similar surge this week.
Bitcoin’s Performance in September
Rekt Capital further commented on Bitcoin’s September performance, typically known for bearish trends. However, in 2023, Bitcoin has defied expectations, recording a 9% increase. This marks the highest average return for the month of September in Bitcoin’s history, even surpassing the 6% gain it achieved in September 2016.
Looking ahead, the analyst highlighted Bitcoin’s track record in October. Historically, nine of the past eleven October months have brought positive returns. Notable gains were recorded in 2017 and 2021, with Bitcoin seeing a 48% and 40% surge during those bull market months.
At the time of writing, Bitcoin was trading at $62,863, slightly down by 1.7% over the past 24 hours, according to CoinGecko data. For Bitcoin to reach a new price discovery range, it would need to surpass its previous peak of $73,738, a level that remains just 14.6% away.
