The impending Bitcoin halving event on April 20, 2024, adds another layer of uncertainty to the market as the BTC experiences a pre-halving retrace.
Analysts like Ash Crypto predict that Bitcoin’s price cycle may peak around 600 days post-halving, likely in the fourth quarter of 2025.
The world’s largest cryptocurrency Bitcoin (BTC) has been through major turbulence recently with its price dropping more than 10% on the weekly chart. after bouncing back from the weekend crash on Monday. The BTC price once again crashed as the US Treasury yield began to soar. As of press time, the Bitcoin price is trading at 5.19% down at $63,156.75, and a market cap of $1.243 trillion.
The market’s volatility on Monday triggered extensive trader liquidations, with over 96,000 traders facing liquidation of their positions in the past day alone, amounting to a noteworthy $276.17 million. CoinGlass data reveals that this figure comprises $202.35 million from long positions and $73.82 million from short positions.
Bitcoin’s existing volatility aligns with the impending halving event projected for April 20, 2024. This event will halve the reward for mining new Bitcoin blocks, a pivotal occurrence historically influencing the cryptocurrency’s price movements.
Crypto analyst Rekt Capital highlights a recurring trend in Bitcoin’s performance preceding halving events. Known as the “Pre-Halving Retrace,” this trend indicates a brief retreat before possible price upswings. Rekt Capital underscores the consistency of this cyclical pattern across past Bitcoin cycles,
Does A Mega Bull Run Await After Bitcoin Halving?
Historically, the Bitcoin halving has always led to a major bull in the Bitcoin price which tends to hit a new all-time high after every such halving event. However, this won’t happen immediately after the halving event. The Bitcoin halving event will cut miner rewards in half from the existing 6.25 BTC per block to 3.125 BTC.
Moreover, the computation tasks required to mine a Bitcoin block would also increase considerably demanding high-end equipment. This will overall add to the mining costs leaving slim margins for the Bitcoin miners. Some of the top Bitcoin mining companies have been already preparing for this while accumulating a huge stash of BTC over the past few months.
As a result, miners will now continue to sell their BTC holdings in order to cope with the changes post-Bitcoin halving. Thus, the selling pressure on the Bitcoin price would continue for some more time after the halving until the bulls eventually take charge, per the Crypto News Flash report.
Throughout history, Bitcoin has witnessed remarkable price surges subsequent to each halving event. Notably, following the 2012 halving, the price skyrocketed by an astounding 9900%, succeeded by a 2900% surge post the 2016 halving and a 700% surge post the 2020 halving. However, Ash Crypto suggests that this time, a noteworthy development is on the horizon.
Based on Ash Crypto’s analysis, Bitcoin currently finds itself in the accumulation phase, with anticipations of the hype phase commencing once the halving concludes. He predicts that the cycle’s peak will likely manifest around 600 days post-halving, corresponding to the fourth quarter of 2025.
