The Bitcoin halving, an event that occurs every four years in which the reward for mining a Bitcoin block is cut in half, is just 200 days away. Historically, the halving has been followed by an increase in the price of Bitcoin, making it a potential investment opportunity.

A historical pattern repeats itself

An analyst known as "thescalpingpro" has noted that Bitcoin has fallen 60% from its 2021 all-time highs. This formation, the analyst says, appears to replicate the same pattern before Bitcoin's halving in 2019. At that time , the currency also fell 60% from its all-time highs.

Halving reduces supply

Each halving occurs because the reward for mining a Bitcoin block is halved. This means that there are fewer coins available on the market, which can lead to increased prices.

The halving impulse

In addition to reducing supply, the halving can also generate bullish momentum in the market. This is because investors can expect the price of Bitcoin to rise after the event.

A rebound to USD 48,000

Another analyst believes Bitcoin could rise to $48,000 before the halving occurs. This analyst relies on the support and resistance levels formed by the Fibonacci retracement levels.

The Bitcoin halving is a major event that can have a significant impact on the price of the coin. Historically, the halving has been followed by an increase in the price of Bitcoin. Therefore, the halving could be a potential investment opportunity for investors seeking exposure to the digital currency.