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The next Bitcoin (BTC) halving is about a hundred days away, and while it’s important, many in the industry lately have been swept up in the hype surrounding the potential approval of a spot Bitcoin exchange-traded fund (ETF) product from the U. S. Stock Exchange. U. S. Exchange Commission (SEC).
However, crypto market expert Rekt Capital has taken the time to explore major Bitcoin halving cycles that investors might be wary of during the months leading up to the halving event.
The first cycle of this series was called the pre-halving era, which is the last hundred days until the final halving. In this case, Rekt Capital believes that the ultimate opportunity to acquire or reduce value will present itself as any withdrawal in this generation will be accompanied by massive investment returns in the months following the halving cycle.
The second cycle will mark the start of the “pre-halving rally,” which will begin approximately 60 days after the halving event. During this cycle, analysts revealed that some investors would “buy the hype” to “sell the news. “This category of buyers will likely cause the first pullback after the halving when they take profits ahead of the event.
This cycle is now added to the third “pre-halving trace” cycle. According to Bitcoin price history, the 2016 halving retracement marked the beginning of a deep 38% correction, while the 2020 retracement marked the beginning of a deep 20% retracement.
The next cycle after this will be the re-accumulation phase that will come months after the retracement era. This era might resemble the crypto winter as significant results may not be recorded for a long time. However, the last phase dubbed the “Parabolic Uptrend” phase will be worth it as the true impact of the halving will now be showcased in full bloom.
While Rekt Capital’s cycle description is comparable to the Litecoin halving that took place in August 2023, the likelihood of obtaining a one-time approval for the Bitcoin ETF may reposition the narrative this time.
Depending on the timeline for the discharge of the approval, if the industry were to discharge the approval in the next few weeks of January, as speculated, the institutional acceptance and liquidity that could reach the market could simply invalidate the cycles, i. e. , the pullback before the halving and reaccumulation phase, which can be significantly shortened.
At the time of writing, Bitcoin is changing hands at a price of $42,834.13, up 0.53% in the past 24 hours.
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