‘History suggests it’s time for Bitcoin to exit’ – Rekt Capital
According to the analyst, if the historical cycle patterns are repeated, the Bitcoin and crypto markets may be on the verge of extinction.
Bitcoin (BTC) has historically broken out of its rally range between 154 and 161 days after halving in previous market cycles, according to analyst Rect Capital in a post on 24 September.
BTC's halving event this cycle was on April 20, 157 days ago, so we're within the timeframe, he said before adding:
“History suggests it's ‘time to get rid' for Bitcoin.”
Source: Rect Capital
In the 2016 halving, BTC broke out of range-bound reserves 154 days after the halving, while in 2020 it broke out 161 days after that year's halving.
The analyst pointed out that history does not always repeat itself with copy and paste, but if it does in this cycle:
“Then this week Bitcoin should break out of its storage range again in the next few days.”
Comparing seasonal returns, the analyst noted that September is typically a bearer for Bitcoin, with the fourth quarter seeing better returns.
However, on September 21st, “Who would have thought that Bitcoin could post its highest average reversion for the month of September this cycle?” he said.
BTC hit its second-best September of 2016 when it gained 6% for the month, and has gained nearly 9% so far this month.
Additionally, nine out of the past eleven Octobers have seen positive returns for Bitcoin, with bull market months such as October 2017 and 2021 seeing massive gains of 48% and 40% respectively.
Source: Rect Capital
Related: Bitcoin's bottom is slowly eroded as whale wallets increase by 3%
Bitcoin has been trading sideways for the past six months but needs to break the previous high of $73,738 to enter a new price recovery zone. It is only 14.6% away from this level.
According to CoinGecko, the price of BTC decreased by 1.7% in the last 24 hours to $62,863. A monthly high of $65,600 was reached on September 23.
Magazine: Trump buys burgers with BTC, Arthur Hayes skeptical of tariff cuts and more: Hodler's Digest
