Bitcoin (BTC) could soon enter a “parabolic phase” if it achieves a crucial weekly close above $71,500, according to renowned crypto analyst Rekt Capital. The trader, in his latest social media update, points to the possibility of a major breakout, signaling the end of an extended re-accumulation phase that has persisted since Bitcoin’s March highs.
BTC’s Price Movement – A New Bull Run Awaits?
Since reaching a peak earlier this year, Bitcoin has seen nearly eight months of price consolidation, marked by what Rekt Capital describes as a “re-accumulation” period. While this extended sideways movement may have frustrated some investors, the analyst suggests it could actually be setting the stage for a substantial bull run. “Once again, the rules are that a Weekly Candle Close above ~$71,500 would kickstart the breakout from the Re-Accumulation Range,” Rekt Capital explained in a recent post.
This potential breakout is reminiscent of Bitcoin’s behavior in 2020, a year that saw the digital currency exceed $20,000 for the first time in three years. Back then, a similar period of re-accumulation preceded a historic bull market that propelled BTC to its previous all-time high.
A Fast-Tracked Market Cycle?
Unlike prior cycles, however, this re-accumulation period could result in a much quicker transition to bullish momentum. Rekt Capital notes that the length of Bitcoin’s post-halving re-accumulation has decreased from 260 days to just 13 days in this cycle, thanks to the price reset that occurred after Bitcoin hit its March highs. According to the analyst, this shift hints at an acceleration in Bitcoin’s market dynamics, potentially leading to a prolonged bull market in the months ahead.
“A Weekly Close above $71,500 would confirm a transition away from the Re-Accumulation phase into the Parabolic Upside phase,” he added. At the time of writing, Bitcoin is trading around $75,200, according to data from Cointelegraph Markets Pro, down slightly by 0.5% but still within range of the target.
Stablecoin Inflows Signal Investor Confidence
Adding to the optimism, on-chain data from CryptoQuant reveals a significant influx of stablecoins into cryptocurrency exchanges. Following the U.S. presidential election results, approximately $9.3 billion worth of ERC-20 stablecoins were deposited into exchanges, an amount that historically signals investor anticipation of a market upswing.
CryptoQuant contributor MAC_D highlighted this movement in a recent blog post, suggesting that the inflow of stablecoins might be the prelude to an extended crypto bull run. The injection of stablecoins—often used by traders to purchase cryptocurrencies like Bitcoin—could fuel a new wave of buying pressure, propelling BTC prices higher.
Looking ahead, Bitcoin’s price forecasts are growing increasingly ambitious. Some analysts anticipate that BTC will reach six figures in the near future, with long-term predictions for 2025 suggesting values upwards of $130,000. For Bitcoin to enter its parabolic phase, all eyes are on the $71,500 level, a breakout above which could unlock new highs and solidify BTC’s trajectory towards becoming a six-figure asset.
As the market awaits this pivotal close, Bitcoin’s upcoming moves could determine whether it embarks on a traditionally longer bull run, potentially transforming 2024 into a landmark year for the cryptocurrency.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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