Bitcoin (BTC) Nears End of Reaccumulation Phase, Analyst Predicts Breakout

Bitcoin has crossed the 160-day threshold since the last halving event, which historically marks the point where major upward price movement begins.

Bitcoin has crossed the 160-day threshold since the last halving event, which historically marks the point where major upward price movement begins.

Key Points

As Bitcoin continues to see steady price growth, recent data suggests that the market may be overly optimistic. On September 30, on-chain analytics platform Santiment reported that market sentiment around Bitcoin is at its most bullish point in months, but cautioned that this could work against expectations of BTC reaching new all-time highs.

Santiment’s analysis delved into social sentiment data, revealing that for every one bearish post about Bitcoin, there are 1.8 bullish posts. While this level of optimism might typically be seen as a positive indicator, the analytics firm noted that markets often move contrary to the crowd’s expectations.

However, not everyone in the crypto community agrees with this assessment. Some argued that the idea of the market behaving opposite to public sentiment may not always hold true, particularly during strong bull runs. One user on X voiced their skepticism, saying:

“In a raging bull market, everyone is bullish, and it keeps pumping.”

Meanwhile, well-known crypto analyst Rekt Capital recently weighed in on Bitcoin’s price movement, suggesting that the cryptocurrency could be nearing the end of its reaccumulation phase. According to the analyst, Bitcoin has crossed the 160-day threshold since the last halving event, which historically marks the point where major upward price movement begins.

In a September 26 YouTube video, Rekt Capital stated that this week might see some sideways price action before an upward motion. He explained:

“If things continue on this path, we could see a breakout in the next week or two. Bitcoin is poised for a move to new all-time highs, and it’s just a matter of when, not if.”

This bullish outlook comes amid Bitcoin’s recent price gains. Since mid-September, the cryptocurrency has risen by around 14%, climbing from below $58,000 to over $66,000 in around 10 days. These gains have helped make this September Bitcoin’s strongest in terms of performance since its inception, with a monthly rise of around 12%.

The shift in sentiment is also evident in the Bitcoin Fear and Greed Index, which measures market sentiment on a scale from extreme fear to extreme greed. As of September 30, the index showed a rating of 61, firmly placing it in the “greed” territory. This marks a major turnaround from earlier in the month when the index hit a low of 22, indicating “extreme fear.”

While the current market outlook remains bullish, there are concerns about Bitcoin’s ability to sustain this momentum. Despite its recent climb, Bitcoin is trading around $64,350, around 13% below its all-time high of $73,734 set in March. Early trading on Monday saw the cryptocurrency drop by 1.7% over the previous 24 hours.