Bitcoin Halving Explained
Here's a breakdown of the 3 phases and what they mean for investors:
1. Pre-Halving Retrace:
* Think of this as a final sale before prices potentially surge. The drop can be sharp but also varies in depth and duration.
* Historically, this occurs 14-28 days before the halving event.
* The goal is to form a low point for the next phase and shake out weaker investors.
2. Re-Accumulation:
* After the retrace bottom, Bitcoin tends to trade sideways, potentially for weeks or months.
* This phase can be frustrating as prices seem stagnant, testing investor patience.
* The key here is that smart investors are accumulating more Bitcoin in anticipation of the next surge.
3. Parabolic Uptrend:
* This is the explosive growth phase everyone waits for.
* Once Bitcoin breaks out of the re-accumulation range, prices tend to skyrocket.
* Historically, this phase lasts around a year, but the current market suggests it could be much faster this time.
Key Points & Considerations:
* Bitcoin halving cuts the rewards for miners in half, impacting the supply of new coins and potentially influencing price.
* While past halvings offer some clues, each cycle is unique. The current market shows signs of repeating patterns from 2016 and 2020 but may move faster.
Disclaimer: This is for informational purposes only, not financial advice. Crypto investments are highly volatile. Always do thorough research before investing.