• Bitcoin has been in an uptrend within a symmetrical triangle this year. Moreover, the pullback from recent highs also supports the concept of accumulation within the pattern.

  • Popular analyst Rekt Capital discussed the five stages of Bitcoin halving and claimed that the price has only entered the pre-halving stage.

  • The main purpose of Bitcoin halving is to reduce the supply of Bitcoin in a controlled manner. Each halving reduces the rate at which miners earn new Bitcoins, which means that new Bitcoins are produced more slowly.

Bitcoin will enter the critical halving process in April 2024. How does each stage progress during the halving? Let's take a closer look!

Bitcoin halving stages and impacts

Bitcoin is currently going through a long-term accumulation phase and maintaining a short-term higher trend. Although small price increases are misinterpreted as early signs of a bull run, major support levels are showing some divergence. If historical trading plays out well, the Bitcoin price will create new highs and rise in the coming days as it has now entered the "pre-halving" period.

Bitcoin has been maintaining an upward trend within a symmetrical triangle this year. In addition, the pullback from recent highs also supports the concept of accumulation within the pattern. If the previous historical trading pattern holds, it is expected that after 60 to 70 days of accumulation, the price will rise.

Popular analyst Rekt Capital talked about the five stages of "Bitcoin halving" and claimed that the price has only entered the pre-halving stage. The analyst explained the impact of this period on the price as follows:

  • Pre-halving phase: If this happens within a few days, analysts claim that the correction could last for the next 140 days. In the past, around 200 days before the halving, prices fell by about 24% (2015) and 38% (2019). Therefore, a 30% drop could push prices to $20,000.

  • Pre-Halving Rally: The last 60 days before the halving is known as the pre-halving rally and investors may experience a rally as they aim to “buy the news.”

  • Pre-halving pullback: This period is usually expected to occur during the halving event, forcing investors to consider whether the halving event is a bullish catalyst. Previously, BTC fell 38% and 20% during 2016 and 2020, respectively.

  • Reaccumulation: After the pre-halving pullback, a months-long accumulation began, with many investors not seeing significant results in their Bitcoin investment, feeling frustrated, impatient, and disappointed, leading to selling pressure.

  • Parabolic Rise: When the Bitcoin price starts to exit the re-accumulation phase, it rapidly grows and reaches new all-time highs.

Analysts say Bitcoin prices are close to entering the pre-halving phase and could soon see a deep correction.

What is Bitcoin Halving?

Bitcoin is a cryptocurrency with a limited supply. A total of 21 million Bitcoins can be produced, which are created through a process called mining. However, the rate at which Bitcoins are created has decreased over time. Every 210,000 blocks (approximately every four years), the Bitcoin reward is cut in half. This event is called the "Bitcoin halving."

The main purpose of Bitcoin halving is to reduce the supply of Bitcoin in a controlled manner. Each halving reduces the rate at which miners earn new Bitcoins, which means that new Bitcoins are produced more slowly. This increases the scarcity and value of Bitcoin while preventing inflation. Halving events support the deflationary function that Bitcoin is designed to have.

An important consequence of Bitcoin halving is that mining activities become less profitable. When miners receive fewer rewards, they must allocate more energy and resources to mining. Therefore, after each halving, mining competition intensifies and less efficient miners exit the market.

In summary, Bitcoin halving is an important event that affects the fundamental economic dynamics of Bitcoin and supports its deflationary characteristics. #BTC $BTC