Although Bitcoin’s (BTC) price is yet to reclaim its March all-time high, a prominent crypto trader and analyst believes the alpha cryptocurrency is on the verge of turning insanely bullish.
Rekt Capital, which accurately predicted Bitcoin’s pre-halving correction, recently claimed that BTC is readying to shift to the parabolic phase of the current cycle.
Why Bitcoin Could Move Significantly Higher In September
Rekt Capital recently told his YouTube subscribers that Bitcoin is currently in the post-halving reaccumulation range characterized by multi-month range-bound price action. According to the analyst, the sideways trading lasted 160 days in 2020, while in 2016 it persisted for 150 days. As such, he thinks BTC could be on track to a forthcoming breakout in September, based on past post-halving chart patterns.
“So if 150 or 160 days were to translate to [the current] boring zone, this re-accumulation phase, then the breakout should take us into late September or early October of this year,” he stated, adding that this boring zone should prepare us for the “banana zone”, which is basically the parabolic phase of the current market cycle.
Rekt Capital further emphasized that the sideways price action of Bitcoin seen in recent months since the March record highs is crucial as it enables the asset to carve out a bottom before rocketing to fresh lifetime highs:
“We always see re-accumulation after the halving, but this enables parabolic price action to new all-time highs and beyond, searching for new all-time highs, price discovery, price trying to new and new heights in the market cycle before eventually peaking in its bull market.”
Bellwether crypto Bitcoin was down about 0.3% on the day to trade at $59,460, according to CoinGecko data.
Another Key Bitcoin Tailwind
The macroeconomic outlook is also bullish. Specifically, Bitcoin could be primed for a huge breakout thanks to the U.S. Federal Reserve gearing up to ease monetary policy.
Last week, U.S. Fed Chair Jerome Powell hinted the central bank could commence interest rate cuts as soon as next month. The incoming rate cuts are anticipated to inject fresh liquidity into financial markets, buoying risk-on assets, including cryptocurrencies, despite ongoing market indecisiveness.
“Increased liquidity will eventually push risk assets higher,” Singapore-based digital asset trading company QCP Capital said in a note to investors. “We are finally on the cusp of a rate-cutting cycle.”
from ZyCrypto https://ift.tt/jitOclK
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