Bitcoin Halving Hysteria: Will History Repeat Itself Or Are We Heading For A Market Meltdown?
April 16 2024 - 10:00PM
NEWSBTC
Bitcoin stands at the forefront, with its upcoming halving event
sparking excitement and uncertainty among investors. As the
countdown to Bitcoin’s fourth halving narrows to roughly three
days, market dynamics have taken a tumultuous turn, with
significant implications for the digital asset’s price trajectory.
Deciphering BTC’s Halving Patterns: Insights Into Pre-Event Price
Behaviour While the Bitcoin market has been on a decline over the
past week, A CryptoQuant analyst has recently highlighted a
recurring pattern in Bitcoin’s price dynamics observed before each
halving cycle. Related Reading: Bitcoin Bears Beware: $3 Billion
Short Liquidation Looms At This Price Mark, Warns Analyst This
pattern entails a significant price decline, a trend witnessed in
previous halving events. For instance, during the second halving,
Bitcoin experienced a price drop of 40.36%, plummeting to $465
before eventually surging to an all-time high of $19,600.
Similarly, preceding the third halving, the cryptocurrency saw a
decline of 20.35%, reaching a low of $8,078 before reaching a peak
of $69,000. In the current halving cycle, the price has already
decreased by 16.65%, mirroring the historical trend identified by
CryptoQuant. Pre #BitcoinHalving Price Fluctuations “It’s essential
to recognize that before each halving cycle, there’s typically a
price collapse, a pattern we’ve highlighted numerous times in the
past.” – By @OnchainTarek Read more 👇https://t.co/ogwZFEecpI —
CryptoQuant.com (@cryptoquant_com) April 16, 2024 Despite the
decline, CryptoQuant suggests that this reduction is typical before
halving events, indicating that it may not necessarily warrant
concern. The CryptoQuant analyst noted: There’s no need for alarm,
as this scenario repeats consistently in each cycle, albeit with
varying percentages. The correct approach now is to enter the
market gradually at previously identified strategic points. The
path to the current cycle’s peak remains open, and we are still at
the beginning of this journey. Bitcoin’s recent price action
reflects the observations made in the CryptoQuant report. The
crypto has witnessed a downward trend over the past week, with a
decrease of over 10% in the last seven days and a further decline
of 3.1% in the past 24 hours. Currently, Bitcoin is trading at
$63,098, indicating ongoing volatility in the market. Market
Experts Weigh In: Bitcoin Insights And Projections Industry experts
offer contrasting perspectives on Bitcoin’s future trajectory in
light of the impending halving. Kris Marszalek, CEO of Crypto.com,
acknowledges the likelihood of short-term selling pressure leading
up to the halving, citing the familiar adage of “buy-the-rumor,
sell-the-news” trading behavior. Nonetheless, Marszalek remains
optimistic about the long-term implications of the halving,
emphasizing its potential to “bolster” Bitcoin’s price trajectory
over an extended period. Echoing this sentiment, Samson Mow, head
of Jan3 BTC adoption-focused company, dismisses the current price
downturn as an “overreaction,” foreseeing a bullish resurgence
post-halving. Related Reading: Lost Treasure Found? Bitcoin Miner
Transfers Over $3 Million BTC After 14-Year Dormancy Mow highlights
the impending halving as a catalyst for a significant “supply
shock” in the Bitcoin market, driven by the absorption of BTC by
spot Bitcoin ETFs and recent regulatory approvals for
Bitcoin-related financial products in Hong Kong. You know what the
halving means though. You know it’s the spark of a massive supply
shock. You’re tracking ETF inflows and demand. You’re aware of the
HK ETFs coming. You’re the lion accumulating #Bitcoin amidst a herd
of sheep. — Samson Mow (@Excellion) April 16, 2024 Featured image
from Unsplash, Chart from TradingView
Quant (COIN:QNTUSD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Quant (COIN:QNTUSD)
Historical Stock Chart
From Jul 2023 to Jul 2024