The upcoming Bitcoin (BTC) halving is only about 100 days away and while this is a significant halving, many in the industry are currently caught up in the halving hype possible approval for a United States Securities and Exchange Commission (SEC) spot Bitcoin exchange-traded fund (ETF) product.
Important Bitcoin Halving Cycles
However, top crypto market expert Rekt Capital has taken the time to uncover the key Bitcoin halving cycles that traders can watch out for over the months leading up to the halving.
The first cycle in this series was called the pre-halving period and covers the last 100 days until the final halving. This is where Rekt Capital assumes the final purchase price or bargain opportunity will emerge, as any decline during this period will be accompanied by huge returns on capital in the months following the halving cycle.
The second cycle will initiate the “pre-halving rally,” which will begin approximately 60 days after the halving event. This cycle, analysts revealed that some investors were actually “buying the hype” to “sell the news.” This category of buyers is likely to trigger the first post-halving retracement as they take profits ahead of the event.
This cycle now brings about the third cycle of the “pre-halving retracement”. Judging by Bitcoin's price action, the pre-halving retracement in 2016 resulted in a deep 38% correction, while the 2020 retracement initiated a deep 20% retracement.
The next cycle after that will be the reaccumulation phase, which comes months after the retracement era. This era could be similar to the crypto winter as significant results may not be recorded for a long time. However, the final phase, dubbed the “Parabolic Uptrend,” will be worth it as the true effects of the halving are now in full bloom.
The Impact of Bitcoin ETFs
While Rekt Capital's cycle description is understandable Litecoin halving which took place in August 2023, the likelihood of snagging spot approval for the Bitcoin ETF could change the narrative this time.
Depending on the time frame in which approval is secured, the industry should do so As speculated, approval should take place in the next few weeks in JanuaryThe institutional adoption and liquidity that could flow into the market could override the cycles, particularly the pre-halving retracement and the reaccumulation phase, which could be significantly shortened.
At the time of writing, Bitcoin is changing hands at a price of $42,834.13, up 0.53% in the last 24 hours.
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