Crypto neighborhood begins Bitcoin halving countdown as milestone date nears

The crypto neighborhood and plenty of of its most high-profile gamers have began to shift their focus towards the Bitcoin halving, a 4-year cyclic occasion that cuts the Bitcoin market provide in half. With the following halving occasion scheduled for April 2024, the Bitcoin mining reward will scale back from the present 6.25 BTC per block to three.125 BTC per block.

Binance CEO Chang Peng Zhao took to Twitter to set the countdown for the following halving in an X (previously Twitter) publish to remind everybody that the following BTC halving occasion is barely 135 days away.

#Bitcoin halving quickly. pic.twitter.com/xp4mWyMKkD

— CZ Binance (@cz_binance) November 19, 2023

Traditionally, Bitcoin halving can be linked to bullish momentum in BTC worth owing to the supply-demand dynamics the place the halving of the availability amid rising demand pushes the BTC worth to new highs simply across the halving time.

Over the past bull cycle, which began in 2020 with the halving in Could 2020, the BTC worth traded below $10,000 nearly two months earlier than the halving interval. Nonetheless, the pre-halving bullish momentum noticed BTC worth surpass the earlier cycle’s all-time excessive of round $17,000. After halving, the BTC worth broke into parabolic momentum and touched a brand new all-time excessive of over $69,0000.

The technical analysts with the ‘X’ profile identify ‘Rekt Capital’ additionally took to Twitter to elaborate on the totally different phases of a BTC bull cycle. The analysts divided the timeline into pre-halving and post-halving occasions, the place they identified that roughly 60 days earlier than the halving, a pre-halving rally tends to happen as traders are likely to “Purchase the Hype” to “Promote the Information.”

Nonetheless, this euphoric worth surge within the pre-halving interval is adopted by a retrace across the time of the particular halving. In 2016, the pre-halving retrace was -38% whereas this pre-halving retrace was -20%.

The pre-halving retrace is adopted by a multi-month re-accumulation section when the BTC worth begins to build up additional. Many traders get shaken out on this stage because of boredom, impatience and disappointment with the shortage of main leads to their BTC funding within the rapid aftermath of the halving.

The buildup section is adopted by the parabolic surge, during which Bitcoin breaks out from the re-accumulation space to the touch new highs. Throughout this section, Bitcoin experiences accelerated development on its option to new all time highs.