The bull cycle that typically follows a halving is driven by a combination of factors:
* Scarcity and Increased Demand: As the supply of Bitcoin becomes more limited, demand tends to increase. Investors and speculators often anticipate future price appreciation, leading to a surge in buying pressure.
* Institutional Adoption: Halvings can attract greater attention from institutional investors, who may view Bitcoin as a potential store of value and hedge against inflation. This influx of capital can fuel significant price rallies.
* Network Effects and FOMO: The growing popularity of Bitcoin and the fear of missing out (FOMO) can create a self-fulfilling prophecy. As more people become interested in Bitcoin, the demand for it increases, further driving up the price.
* Technical Analysis and Market Sentiment: Technical indicators and market sentiment can play a significant role in shaping the bull cycle. Factors like support levels, resistance levels, and overall market sentiment can influence investor behavior and price movements.
