As crypto investors are filled with expectations regarding the upcoming Bitcoin Halving, renowned market analyst Ali Martinez has shared four key points to consider in anticipation of the event.
After a cruel crypto winter that lingered for over a year, investors are filled with expectations regarding the upcoming Bitcoin Halving, given BTC’s historical performance following such an event.
It is no longer news that Bitcoin Halving occurs every four years, where miners’ rewards are slashed into halves. So far, the market has experienced three halvings, which occurred in November 2012, July 2016, and May 2020.
Notably, the upcoming halving is expected to take place in April 2024. After the halving, Bitcoin miners’ rewards will be slashed from the current 6.25 BTC to 3.125 BTC per block.
4 Things to Know Ahead of Bitcoin Halving
As we approach the April 2024 projected halving date, prominent market analyst Ali Martinez (@ali_charts) took to the X (formerly Twitter) platform to highlight four key points investors should consider as they anticipate the event.
As we approach the #BitcoinHalving in April 2024, here are four key points to consider:
1⃣Post-halving corrections: After the 2016 and 2020 halvings, #BTC experienced corrections of 30% and 7% within a month.
2⃣Significant post-halving rallies: Following the 2012, 2016, and 2020… pic.twitter.com/aaJpJcZtAm— Ali (@ali_charts) January 31, 2024
Post-halving Corrections
Historically, Bitcoin halving is seen as a bullish event followed by a significant spike in BTC price. This is majorly because the supply of new Bitcoin into the market reduces amid growing demand.
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Prior to this price spike, Martinez pointed out that Bitcoin experienced major corrections within a month after the 2016 and 2020 halvings. According to Martinez, the price of Bitcoin plummeted 30% within one month after the 2016 halving. Similarly, Bitcoin slumped 7% in one month after the 2020 halving.
Massive Post-halving Rallies
Per Martinez, the post-halving dip is usually followed by a massive spike in the price of Bitcoin. Specifically, the analyst noted that the price of Bitcoin spiked 11,000%, 2,850%, and 700%, following the 2012, 2016, and 2020 halvings, respectively.
Several analysts have given bullish predictions for Bitcoin price ahead of the halving, with many forecasting that the asset will surge above $100,000 after the event.
Bull Market Durations
It is worth noting that each Bitcoin Halving event usually introduces a bull market. Martinez said after the 2012, 2016, and 2020 halving, the bull market that accompanied these events lasted 365 days, 518 days, and 549 days, respectively.
Next Market Top
Furthermore, Martinez noted that Bitcoin might hit a new all-time high (ATH) around April or October 2025 if the upcoming bull market follows historical trends.
Notably, Bitcoin’s ATH of $69,044 was recorded on November 10, 2021, 18 months after the 2020 halving.
In the hours leading up to press time, Bitcoin was changing hands at $42,097, down 39% from its all-time high. While the price of Bitcoin has surged tremendously after each halving, investors must tread carefully as there is no guarantee that Bitcoin will experience a massive surge after the upcoming event.
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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