5 stages of Bitcoin halving
1. Pre-halving period
There are approximately 65 days left until the Bitcoin halving in April 2024. Historically, any deeper pullbacks that occur during this period tend to occur in the aftermath of the halving.
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This period will be crucial as any retracement during this period could represent the ultimate dip buying opportunity for Bitcoin.
Specifically, there is a 30-day or so window between now and the pre-halving rally where a deeper retracement could occur. 2. Before halving
rebound halved
About the first 60 days, there tends to be a pre-halving rebound (light blue)
Amid halving expectations, investors “buy the hype” and struggle to “sell the news”
Short Selling - Long-term traders and speculators "buy Hpye" in the weeks leading up to the halving, expecting to profit, thus contributing to the pre-halving retracement that occurs only weeks before the halving event.
3. Retracement before halving
A Pre-halving retracements tend to occur around halving events (dark blue circle)
In 2016, the retracement depth before halving was -38%
In 2020, the retracement depth before halving is -20%
This pre-halving retracement could last for weeks
4. Re-accumulate funds before halving
Retracement followed by months of renewed accumulation (red)
Many investors are driven out of boredom at this stage and are impatient and disappointed with the lack of significant results from their BTC investments after the halving
5. Parabolic Uptrend
Once Bitcoin breaks out of the re-accumulation zone, it breaks out of the parabolic uptrend (green)
Bitcoin Experiences Accelerated Growth During This Phase, Hitting All-Time Highs