Bitcoin (BTC) is likely to experience its longest sideways trading period in a halving year if there is no significant growth in the next 14 days.
According to a dashboard published by CryptoQuant CEO Ki Young Ju, the longest time BTC has ever needed to rally is 298 days.
In 2020, Bitcoin achieved the highest return index in the history of halving years, with 4.05 points, while 2016 recorded the lowest return index, with only 2.26 points.
Although 2012 was the second-best performing year, it also recorded the strongest start after 298 days, with an index of 2.06 points.
Longest Accumulation Period of All Time
This year also marked a milestone as Bitcoin reached a new all-time high before the halving for the first time in its 15-year history.
Historically, Bitcoin has typically set a new high around 240 days after a halving event in the last four cycles. However, this trend was broken this year when BTC hit a high of $73,737.94 on March 14, accelerating the post-halving rally by 260 days.
However, multiple corrections have occurred since the halving, reducing the rally to 60 days, according to Rekt Capital.
The analyst also pointed out that Bitcoin is showing signs that the market is trying to reduce this acceleration period.
Additionally, the historical “reaccumulation” phase that Bitcoin has experienced after each halving – when the price trades sideways before a sharp rally – is now the longest since 2016.
While it took Bitcoin 161 days after the halving to begin its all-time high in 2016, it took 164 days in 2020. As of October 11, Bitcoin has gone through 176 days of sideways trading.
With Bitcoin well past its time to exit the reaccumulation range between the $71,000 and $60,000 price ranges, Rekt Capital predicts that the sideways phase could continue for another two months. This would give enough time for the growth rate to slow to zero.
If it plays out as predicted, this reaccumulation range would last up to 236 days, making it the longest period ever in a halving year.