Déjà vu? Bitcoin set for parabolic rally in 2024 – Here’s why

• Bitcoin’s 2024 price movement mirrored 2020, suggesting another parabolic rally could be imminent.
• BTC traders look for accumulation trends as key resistance levels signal a possible breakout ahead.

Bitcoin [BTC] is showing signs of repeating its post-halving behavior from 2020, raising the possibility of a parabolic rally in 2024.

According to crypto analyst Rekt Capital, Bitcoin’s price action in 2024 mirrors the market dynamics observed after the 2020 Halving. 

The focus is on the 161-day post-halving period, which historically led to significant price surges.

Rekt Capital’s analysis highlighted the similarities between Bitcoin’s post-halving price movements in 2020 and 2024.

In 2020, Bitcoin’s price surged after breaking out of its Re-Accumulation range, which marked the beginning of a major rally. 

This breakout was characterized by increased buying activity and a shift in market sentiment, pushing prices to new highs.

Source: X

In 2024, Bitcoin is again positioned just after the critical 161-day post-halving period, suggesting the potential for a similar breakout.

As of press time, Bitcoin was trading at $63,439, with a 0.60% increase in the last 24 hours and a 7.51% gain over the past week. 

This upward movement reflects a pattern similar to 2020, reinforcing expectations of another strong rally.

Key resistance and support levels to watch

Bitcoin’s price is approaching key resistance levels that need to be cleared to confirm a breakout.

BTC’s recent rise from $56,000 to $63,000 shows strong bullish momentum, but the resistance at these levels remains a critical hurdle.

Support levels, highlighted on the chart, indicate strong buying interest, similar to the setup in 2020.

These support zones, marked by orange circles, provide a strong base that could help stabilize Bitcoin’s price in case of a pullback, maintaining the overall bullish outlook.

Bitcoin accumulation spikes as traders eye breakout

Bitcoin’s market setup indicates the possibility of an imminent breakout. The price has fluctuated between $58,351 and $63,239 from the 15th to the 22nd of September, with a notable low on the 20th of September at $59,573 before a recovery. 

On-chain data also pointed to accumulation trends, with net BTC outflows of -977.58 BTC in the last 24 hours and -469.18 BTC over the past seven days, indicating reduced selling pressure.

These outflows suggested that market participants were holding onto their BTC, potentially positioning for further price increases.

Source: IntoTheBlock

According to DefiLlama data, the Total Value Locked (TVL) in Bitcoin-related projects was $573.26 million, with 24-hour fees totaling $373,571 and active addresses reaching 595,289

         Read Bitcoin (BTC) Price Prediction 2024-25  

These metrics reflected ongoing market activity that could serve as a catalyst for further price increases, supporting the idea of a sustained upward trajectory as seen in previous cycles.

Bitcoin’s market activity reflects ongoing investor interest, as indicated by recent trading volumes and on-chain data.