CZ Binance and other crypto experts begin Bitcoin halving countdown; here's what to know and how to prepare💥🚀
The crypto community is eagerly anticipating the upcoming Bitcoin halving, an event that occurs every four years and reduces the market supply of new #Bitcoin in half.
With the next halving scheduled for April 2024, the Bitcoin mining reward will be cut from 6.25 BTC per block to 3.125 $BTC per block.
Bitcoin halving has historically been linked to bullish momentum for the BTC price due to supply and demand dynamics. The halving of new supply amid growing demand typically pushes the BTC price to new highs in the months following the event.
During the last bull cycle, which started with the halving in May 2020, the BTC price traded under $10,000 almost two months before the halving.
However, pre-halving bullish momentum saw BTC's price surpass the previous cycle's all-time high of around $17,000. After the halving, the BTC price broke into parabolic momentum and touched a new all-time high of almost $69,000!
☑️Here's a breakdown of the different phases of a BTC bull cycle🔄 :
✅Pre-halving rally: Investors tend to "Buy the Hype" to "Sell the News," leading to a surge in BTC price.
✅Pre-halving retrace: A price correction typically occurs around the time of the actual halving.
✅Re-accumulation phase: BTC price starts to accumulate again, often accompanied by investor impatience and disappointment.
🚀Parabolic surge: Bitcoin breaks out from the re-accumulation area to touch new highs.
To prepare for the upcoming halving, consider the following:
1️⃣ Invest only what you can afford to lose.
2️⃣Employ a long-term investment horizon.
3️⃣Diversify your portfolio across multiple crypto assets or #altcoin
Remember, #Bitcoinhalving is a recurring event that has consistently been followed by bullish momentum for the BTC price. While past performance is not a guarantee of future results, understanding the halving cycle and preparing accordingly can help you navigate the market and make informed investment decisions.
