
The Bitcoin halving is fast approaching, in 97 days to be precise. Often, analysts see this reduction in rewards for BTC miners as a signal of a bull run. Before entering this phase, let’s explore together the different stages that constitute it
Bitcoin halving step by step
In a recent analysis, Glassnode argued that “ the next halving should take place in around 130 days “. At this time, no specific date has been announced. However, this crypto data expert remains convinced that the 4th BTC halving will occur on April 23, 2024.
In his post dated January 13, crypto trader and analyst REKT detailed 5 key stages of Bitcoin halving.
Pre-Halving period
As announced at the beginning of this article, there remains approximately 90 days before the bitcoin halving. For Rekt:
“ Historically, the deeper retracements that occur during this period tend to generate a fantastic return on investment for investors in the months following the Halving. »
Thus, this period is favorable for the purchase of bitcoins knowing that a “ window of approximately 30 days », located between the pre-Halving and the pre-Halving rally, will favor the appearance of a deeper retracement.
Pre-Halving Rally
This rally will peak at approximately 60 days before Halving, or within a month. Occasionally, investors will engage in practices associated with “Buy the Hype” in order to make the most of “Sell the News.”
“ Short-term traders and speculators “Buy The Hype” several weeks before halving, hoping to cash in on this hype-fueled rally. Then, these speculators “Sell The News” to realize this profit, thereby contributing to a retracement before the fall that occurs only a few weeks before the Halving event itself. », notes Rekt.
Pre-Halving Withdrawal
This is a retracement that tends to repeat itself with each Bitcoin Halving. In 2016, it was valued at -38%, and -20% in 2020.
Details:
“ This retracement can last for several weeks, leading investors to wonder if the ‘Halving’ was ultimately a bullish catalyst for prices. »
Re-accumulation
This re-accumulation phase can extend over several months, potentially shaking investors out of boredom. Some might lose patience and find themselves disappointed due to a ” lack of major results in their BTC investments immediately after the Halving “.
Parabolic upward trend
This is where the predictions of a bitcoin bull run, where its price can reach 6 or even 7 figures, as Adam Back (CEO of Blockstream) wishes, come true.
“ It is during this phase that bitcoin experiences accelerated growth and reaches new all-time highs. », concludes Rekt.
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