Many people believe that the Bitcoin halving is the door to a new bull market, but now the Bitcoin halving is getting closer. BitcoinThe major event will be held in April next year, and time cannot fly fast enough for the cryptocurrency community. While the countdown has now virtually begun, we discuss the event and review Bitcoin’s price action before and after previous halvings.
Bitcoin Halving: Less than 150 days to go
The Bitcoin halving is a predetermined event built into the Bitcoin protocol that occurs every 210,000 transaction blocks mined. With the Bitcoin halving, the rewards miners receive for successfully mining new blocks of transactions are also halved.
The next halving is expected to occur on April 18, 2024. However, this date is not fixed and may change depending on how quickly new blocks are mined. After the next halving, miners will receive 3.125 BTC as block reward instead of the current 6.25 BTC.
Halving reduces the number of new Bitcoins put into circulation, thereby exacerbating scarcity. In the past, this has always resulted in a new bull run, with Bitcoin rising to new heights.
Bitcoin price trend before and after halving
The first thing to note is that while halvings have been a catalyst for a long-term upward trend so far, that doesn’t mean that will happen next year.
Cryptocurrency analyst Rekt Capital took to X (formerly Twitter) to dissect the price action around Bitcoin’s halving more than a month ago.
#BTC
5 stages of Bitcoin halving
1. Pre-halving stage
There are about 5.5 months until the Bitcoin halving in April 2024
Historically, any deeper pullbacks that occur during this period tend to produce strong investment returns for investors in several sectors… pic.twitter.com/oINuoCu8f5
— Rekt Capital (@rektcapital) October 28, 2023
In the past, halvings themselves have never directly led to major gains, but instead resulted in months of sideways trading. Since then, Bitcoin has continued to enter a bull market and hit new highs repeatedly.
In addition, analysts said that Bitcoin historically has a “pre-halving rally” about 60 days before the halving. During this time, as the hype around the new halving continues to grow, more and more investors are buying Bitcoin with the intention of selling it for a profit.
Subsequently, prices tend to drop around the time of the halving because many people want to dump their coins on the market at that time. In 2016, Bitcoin’s decline was equivalent to 38%, while in 2020, Bitcoin’s decline reached 20%.
No one can say for sure what Bitcoin prices will do this time around, but either way, it will be interesting to see how far Bitcoin will follow its previous price action.
Information source: Compiled from CRYPTO-INSIDERS by 0x Information.Copyright belongs to the author Ivo Melchers and may not be reproduced without permission.