The much-anticipated Bitcoin halving that happened on April 19 has not yet resulted in the expected price appreciation stemming from the subsequent supply crunch.
While the price of BTC has remained relatively stable below $70,000, pseudonymous crypto analyst Rekt Capital believes new all-time highs are possible based on the flagship crypto’s history of solid outperformance after the supply-halving event.
Bitcoin’s Jump To New ATH ‘Only A Matter Of Time’
In a recent update, analyst Rekt Capital delved into whether investors should expect a fresh all-time high or if the halving event is already priced in.
The pundit noted that the quadrennial Bitcoin halving has historically been associated with bull runs, with the premier crypto registering a parabolic upsurge and a price peak in the months after the event.
“The Bitcoin halving is not priced in. Historically, whenever we’ve seen a halving, we’ve seen phenomenal upside at this point in the cycle, where already we’ve seen new all-time highs but we’ve been consolidating for a long time, and so breaking to new all-time highs once again is only a matter of time,” Rekt Capital posited.
Expectations of reduced supply and skyrocketing demand have previously resulted in exponential price increases and bullish market sentiment. However, Rekt Capital does not expect Bitcoin to immediately rocket to $400,000 as it is not on the logarithmic scale.
BTC tends to consolidate for over 150 days before finally breaking out in an explosive rally that lasts several months. According to popular traders, the Bitcoin market is currently in a reaccumulation phase.
“We’re currently in a re-accumulation period again, so the fact that we’re re-accumulating here, the longer, the better, the more we pause and capture a breather here will be better for the uptrend that inevitably ensues afterward,” he explained.
Rekt Capital also recently observed that Bitcoin has officially escaped the post-halving danger zone, which has historically been associated with downside volatility during previous cycles. However, he doesn’t expect Bitcoin to scale new historical levels until later this year.
BTC price could be on track for the coveted $100,000 milestone, particularly after breaking past its 2021 all-time high before the halving. Meanwhile, heightened demand from traditional finance could see Bitcoin regaining its March record of $73,737 soon.
At the time of publication, Bitcoin was at $70,538, a 2.42% rise on the day.
