How Much Time Left Until Breakout? Part 2
Everything you need to know about the ReAccumulation Phase
Welcome to the Rekt Capital newsletter, a resource for investors who want to better navigate the crypto markets with the help of cutting-edge crypto research and unbiased market analysis.
Old All Time Highs Are New Support
Over the past several weeks, Bitcoin has successfully retested the old All Time High area as new support (green) and has since rallied to the very top of the Re-Accumulation Range.
Bitcoin has been consolidating inside this Re-Accumulation Range for 3 months now and continues to reject from the Range High resistance, despite very brief upside wicks beyond it.
Historically, we know that Bitcoin tends to consolidate for up to 150-160 days after the Halving before breaking out so it comes as no surprise that BTC hasn't been able to break beyond its Range High resistance thus far, merely 56 days after the Halving:
In 2020 at this same point in the cycle (i.e. 56 days after the Halving) for example, Bitcoin had already challenged the respective Range High, rejected to almost the Range Low before trying to find a bottom at a Higher Low relative to the Range Low.
In this cycle on the other hand, Bitcoin has been hanging about just below the Range Highs for weeks now; in fact, this is the 4th week that Bitcoin is hovering below the crucial resistance.
What's more, if we look at the first chart in the newsletter again but zoom into the Weekly timeframe, we'll notice a new Lower High has developed (black):
This new Lower High of course is relative to the April highs at the Range High and if this Lower High persists, it could be a cause for concern and potential rejection from here.
Bitcoin needs to break the Range High to breakout into the Parabolic Phase of the cycle so if price isn't even able to break the Lower High that has newly formed, then that's a potential sign of resistance building up a little earlier than the Range High, with resistance weighing down on price at lower levels.
In other words, instead of resistance building at the $71500 Range High, this Lower High is suggesting that the resistance is now building also at the $69000 level as well.
In today's newsletter, we'll dissect the previous cycles to better understand this current Re-Accumulation Range going forward.