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The Bitcoin Halving in 5 phases!

Sun 14 Jan 2024 ▪ 4 min of reading ▪ by Mikaia A.
Getting informed Blockchain

The Bitcoin halving is fast approaching, with just 97 days to go, to be precise. Often, analysts see this reduction in BTC miners’ rewards as the signal for a bull run. Before we enter this phase, let’s explore together the various stages that make it up.

Photo d'un individu se rapprochant petit à petit d'un logo géant du bitcoin

The Bitcoin halving step by step

In a recent analysis, Glassnode suggested that “the next halving is expected to occur in about 130 days.” At that time, no specific date had been announced. However, this crypto data expert remains convinced that the 4th BTC halving will take place on April 23, 2024.

In his post dated January 13, the trader and crypto analyst REKT detailed 5 key stages of the Bitcoin halving.

The 5 key stages of the bitcoin halving

Pre-Halving Period

As announced at the start of this article, there are about approximately 90 days until the Bitcoin halving. According to 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 conducive to buying bitcoins knowing that a “30-day window“, located between the pre-Halving and the pre-Halving rally, will favor the occurrence of a deeper retracement.

Pre-Halving Rally

This rally will show up approximately 60 days before the Halving, which is in about a month’s time. On this occasion, investors will engage in practices associated with the phenomenon of “Buy the Hype” in order to maximize the benefits of the “Sell the News.”

Short-term traders and speculators ‘Buy The Hype’ several weeks before the halving, hoping to profit from this rally fueled by hype. Then, these speculators ‘Sell The News’ to realize this profit, thus contributing to a retracement before the drop that occurs only a few weeks before the Halving event itself,” notes Rekt.

Pre-Halving Retracement

This is a retracement that tends to repeat with each Bitcoin Halving. It was valued at -38% in 2016, and -20% in 2020.

Clarification:

This retracement can last several weeks, leading investors to wonder if the ‘Halving’ has ultimately been a bullish catalyst for prices.

Re-accumulation

This re-accumulation phase can stretch over several months, potentially shaking investors due to the boredom experienced. Some might lose patience and end up disappointed because of an “absence of major results in their BTC investments immediately after the Halving.”

Parabolic Uptrend

This is where the Bitcoin bull run predictions, where its price may hit six, or even seven figures, as anticipated by Adam Back (CEO of Blockstream), come true.

It is during this phase that Bitcoin experiences accelerated growth and reaches new all-time highs,” concludes Rekt.

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Mikaia A. avatar
Mikaia A.

La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.