š¹ The 5 Crucial Phases of the Bitcoin Halving! š”š
1. Pre-Halving Period:
With about 90 days until the April 2024 halving, this period is crucial. Historically, any deeper retracement during this phase has generated significant ROI after the halving. These next 30 days likely represent the last discounted buying opportunity for Bitcoin.
2. Pre-Halving Rally:
About 60 days before the reduction, a pre-halving rally occurs (light blue). Investors ābuy the hypeā in anticipation of āselling the news.ā Short-term speculators participate in this rally before selling for profits, leading to a pre-halving retracement a few weeks before the event.
3. Retrace Before Halving:
A retracement before the halving occurs around the event itself (dark blue circle). In 2016, it was -38%, and in 2020, -20%. This retracement can last for several weeks, leaving investors wondering if the halving will be a bullish catalyst.
4. Reaccumulation:
The pre-halving retracement is followed by a multi-month reaccumulation (in red). Some investors may be shaken by impatience and disappointment.
5. Parabolic Uptrend:
After reaccumulation, Bitcoin enters a parabolic uptrend (in green). It is during this phase that Bitcoin experiences accelerated growth towards new all-time highs.
These phases illustrate the Bitcoin halving cycle, providing investors with strategic insight to navigate market fluctuations. š°š
