Bitcoin Reaccumulation Hints at Parabolic Run as Market Momentum Builds

Bitcoin has again demonstrated bullish momentum by climbing above $66,000 on Friday, signaling the potential for a sustained rally.

Market analysts suggest that Bitcoin may have exited its reaccumulation phase, which could set the stage for a parabolic rise. 

Reaccumulation Phase and Potential for Parabolic Run

Rekt Capital, a noted cryptocurrency analyst, shared insights into Bitcoin’s recent movements, emphasizing the importance of the reaccumulation phase in Bitcoin’s price cycles. 

According to the analysis, Bitcoin has returned to its reaccumulation range, a crucial indicator from previous bull cycles. The analyst highlighted that Bitcoin’s break above its downside deviation marks the end of the accumulation phase, signaling that the bargain-buying period has passed. 

This transition from accumulation is a precursor to a potential parabolic rally for both Bitcoin and altcoins. Historical data supports the notion that Bitcoin typically leads the way in bull markets, with liquidity first flowing into Bitcoin before trickling down to altcoins. 

While the cryptocurrency market may rally gradually over the coming months, some experts predict stronger upward momentum into October and beyond.

Hong Kong’s Role in Crypto Expansion

As Bitcoin gains momentum, Hong Kong’s evolving stance toward the crypto market is garnering attention. The region has positioned itself as a global over-the-counter (OTC) crypto hub, reinforcing its pro-crypto reputation. 

This strategic shift is particularly notable given Hong Kong’s proximity to China, which has maintained a stricter stance against cryptocurrencies.

The Thinking Crypto analyst pointed out that Hong Kong’s openness to crypto businesses and its support for crypto companies, including the introduction of crypto exchange-traded funds (ETFs), could significantly impact the broader market. 

Additionally, the analyst speculated that Hong Kong’s stance might influence China’s position on cryptocurrencies, with the possibility of China easing its anti-crypto policies by 2025. 

The advancement of Hong Kong as a crypto hub is a strategic move that may have ripple effect on the global crypto market.

As of Friday, Bitcoin was trading at $65,758.97 with a 24-hour trading volume of $20.7 million; however, the experts are still optimistic about BTC. 

Though Bitcoin has shown a 0.93% decline in the last one day, a bulls’ break through the 0.768 Fibonacci retracement level on the daily chart is likely to push the prices higher. Bitcoin market capitalization at the time of writing was $1.3 trillion with 19.76 million BTC in circulation.