Anticipate Crypto Community Towards Bitcoin Halfing 2024: Focus On Supply And Demand
JAKARTA - The crypto community and many of the industry's leading players are starting to shift their focus to Bitcoin halving, an event that occurs every four years and cuts the market supply of Bitcoin (BTC) by half. With the next HAlving event scheduled for April 2024, Bitcoin mining prizes will be reduced from 6,25 BTC per block to 3,125 BTC per block.
Binance CEO Changpeng Zhao used Twitter to count back to the next half in a post on X (formerly Twitter) to remind everyone that BTC's next halling event is only 135 days away.
Historically, Bitcoin haloing is linked to bullish momentum for BTC prices due to supply dynamics and demand. New supply cuts amid increasing demand usually push BTC prices to new levels within months of halving.
During the last bullish cycle, which started with halving in May 2020, the price of BTC was trading below US$10,000 (Rp154.4 million) nearly two months before haloing. However, the bullish momentum before half-hating the price of BTC surpassed the previous record high of around US$17,000 (Rp262.6 million). After haloing, the price of BTC entered parabolic momentum and touched a new record high of nearly $69,000).
Famous merchants and analysts, Rekt Capital, also used X to explain the various phases of BTC's bullish cycle. These analysts divide time into period before halling and after halling, highlighting that about 60 days before halling, there are frequent rallies before halling as investors tend to "Buy hype" for "Selling News."
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However, the spike in euphoria prices in the period before halving is usually followed by a retracement around the actual halving time. In 2016, the retracement before halving was -38%, while the retracement before the 2020 halving was -20%.
Retracements before diving are often followed by the multi-month recurrence phase when the price of BTC goes up and down, with little profit during the stagnation period. Many investors leave the market at this stage due to boredom, impatientness, and disappointment with their BTC investment performance after halling.
This accumulated phase is usually followed by a parabolic spike, where Bitcoin is out of the recocuum area to hit a new record high. During this phase, Bitcoin experienced rapid growth towards a new record high.