Following Bitcoin’s recent halving event, an analyst suggests that the digital asset’s price is yet to catch up with the trend. Historically, Bitcoin has experienced substantial price growth following a halving, which has held true in previous cycles: 2012, 2016, and 2020. Analysis shows that Bitcoin often experiences resistance at previous all-time highs, which frequently become points of accumulation leading to a strong upward trend.
Particularly in the 2016 and 2020 cycles, Bitcoin saw accumulation just below these resistance levels, followed by a sharp price surge. In the current cycle, the old all-time high is now acting as a support level following its previous role as resistance. This transformation is significant, as it paves the way for potential price increases.
Currently, Bitcoin is in an extended reaccumulation phase lasting over 185 days, longer than previous cycles. However, a breakout into the parabolic phase occurred just 160 days post-halving in 2020. To trigger the next parabolic phase, Bitcoin must break through recently established resistance levels from the past few months.
Recent price movements suggest a consistent range between established lows and highs, indicating a potential breakout may soon occur. A weekly close above the current resistance level would signal the start of a potential rally. This reaccumulation phase represents an excellent opportunity for investors to accumulate ahead of the market transitioning to a parabolic uptrend, which historically follows this period, leading to significant price increases.
While previous cycles demonstrated major post-halving gains, an analyst advises managing expectations and that returns in this cycle are likely lower than in the past. Nonetheless, a realistic outlook might suggest potential price movements towards the $100,000 range. Still, investors should remain cautious as the market continues to evolve post-halving.
