Countdown Begins for Bitcoin Halving
The crypto community and its prominent figures are eagerly anticipating the upcoming Bitcoin halving, a significant event that occurs every four years. This event cuts the Bitcoin market supply in half, and the next halving is scheduled for April 2024. As a result, the Bitcoin mining reward will be reduced from the current 6.25 BTC per block to 3.125 BTC per block.
Renowned Figures Join the Excitement
Binance CEO, Chang Peng Zhao, recently took to Twitter to set the countdown for the next halving. In a tweet, he reminded his followers that the BTC halving event is only 135 days away, generating even more buzz around the event.
Bullish Momentum Expected
Historically, Bitcoin halving has been associated with bullish momentum in BTC price. The reduction in supply, coupled with growing demand, tends to push the BTC price to new highs around the halving time. During the last bull cycle, which began in 2020 with the halving in May, the BTC price exceeded $10,000 just before the halving. After the halving, the price soared to a new all-time high of over $69,000.
Analyzing BTC Bull Cycles
Technical analysts, known as 'Rekt Capital,' have delved into the different phases of a BTC bull cycle. They divided the timeline into pre-halving and post-halving events. Around 60 days before the halving, a pre-halving rally typically occurs as investors "Buy the Hype" and then "Sell the News." However, this surge is often followed by a retrace around the time of the actual halving.
The Road to New Highs
After the pre-halving retrace, a multi-month re-accumulation phase takes place, during which the BTC price continues to accumulate. Many investors may become impatient or disappointed with the lack of immediate results following the halving, leading to some selling off their BTC holdings. However, this phase is ultimately followed by a parabolic surge, where Bitcoin breaks out from the re-accumulation area and reaches new all-time highs.
As the Bitcoin halving date draws near, the crypto community eagerly awaits the potential impact on BTC price and the subsequent bull cycle. With historical patterns and the excitement surrounding the event, many are optimistic about the future of Bitcoin.
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