- Bitcoin’s price movement in 2024 mirrored that of 2020, suggesting that another parabolic rally could be imminent.
- BTC traders look for accumulation trends as key resistance levels indicate a possible breakout.
Bitcoin [BTC] shows signs of repeating its post-halving behavior from 2020 onwards, raising the possibility of a parabolic rally in 2024.
According to crypto analyst Rekt Capital, Bitcoin’s price action in 2024 reflects the market dynamics observed after the 2020 halving.
The focus is on the 161-day period following the halving, which has historically led to significant price increases.
Rekt Capital’s analysis marked the similarities between Bitcoin’s price movements after the halving in 2020 and 2024.
In 2020, Bitcoin’s price rose after breaking out of its reaccumulation range, marking the start of a major rally.
This breakout was marked by increased buying activity and a shift in market sentiment, pushing prices to new highs.
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In 2024, Bitcoin is once again just past the critical 161-day post-halving period, indicating the potential for a similar breakout.
At the time of writing, Bitcoin was trade at $63,439, up 0.60% in the past 24 hours and up 7.51% in the past week.
This upward move reflects a pattern similar to that of 2020, reinforcing expectations of another strong rally.
Key resistance and support levels to watch
Bitcoin price is approaching key resistance levels that need to be cleared to confirm a breakout.
BTC’s recent surge from $56,000 to $63,000 shows strong bullish momentum, but resistance at these levels remains a critical hurdle.
The support levels, highlighted in the chart, indicate strong buying interest, similar to the situation in 2020.
These support zones, highlighted by orange circles, provide a strong foundation that could help stabilize Bitcoin’s price in the event of a pullback, maintaining the overall bullish outlook.
Bitcoin accumulation increases as traders see a breakout
Bitcoin’s market setup indicates the possibility of an impending breakout. The price fluctuated between $58,351 and $63,239 between September 15 and 22, with a notable low on September 20 at $59,573, before a recovery.
On-chain data also pointed to accumulation trends, with net BTC outflows of -977.58 BTC in the past 24 hours and -469.18 BTC in the past seven days, indicating reduced selling pressure.
These outflows suggested that market participants were holding on to their BTC, potentially positioning themselves for further price increases.
Source: IntoTheBlock
According to DefiLlama data, the Total Value Locked (TVL) in Bitcoin-related projects reached $573.26 million, with 24-hour fees totaling $373,571 and active addresses reaching 595,289
Read Bitcoin (BTC) price prediction 2024-25
These measures reflected continued market activity that could serve as a catalyst for further price increases, supporting the idea of a continued upward trajectory seen in previous cycles.
Bitcoin market activity reflects continued investor interest, as evidenced by recent trading volumes and on-chain data.