According to past experience, the Bitcoin halving process can usually be divided into four stages:
1. The rising period before halving:
About 60 days before Bitcoin halving, the market tends to show an upward trend. This is because investors will anticipate the halving event, and short-term traders and speculators will actively participate in speculation, hoping to make profits from the rebound in prices.
2. The pullback stage before halving:
After the end of the upward trend before halving, there is often a period of pullback. This pullback usually occurs a few weeks before the halving event, and its depth and duration vary from case to case. Investors may sell their Bitcoin holdings to realize profits.
3. The re-accumulation period after halving:
After experiencing the pullback before halving, the market often enters a re-accumulation period of more than one month or even more months. During this period, many investors may feel bored, impatient and disappointed because Bitcoin has not performed well after halving.
4. The parabolic rise stage after halving:
Once Bitcoin breaks through the re-accumulation stage, it may enter a parabolic rise trend. At this stage, the growth rate of Bitcoin will accelerate, and the market may usher in a new historical high. This stage may last for more than a year, and market sentiment is often high.
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