Bitcoin’s Early Halving Year Pattern

2J32...vkac

20 Jan 2024

Renowned YouTuber Benjamin Cowen examines a recurring pattern in Bitcoin’s behaviour in the first part of its halving year in a new video titled “Bitcoin: Early Halving Year Pattern.” An important event in the Bitcoin ecosystem is the halving event, which happens about every four years and reduces the reward for mining new blocks by half, slowing down the rate at which new bitcoins are created.
For more insights and updates, consider joining our Telegram Channel for reliable crypto signals.
Btc halving
How Does Halving Occur? What Is It?
A maximum of 21 million coins were intended to be in circulation when Bitcoin was first established. The goal of this design was to maintain the coin’s long-term worth and create scarcity. A calculated decision to limit the amount of new currencies that can enter circulation and stop mining from driving up inflationary pressures is to halve the block rewards.
The goal of the halving process is to progressively introduce additional Bitcoin coins over a period of years in order to control supply inflation, promote market stability, and guarantee a fair distribution of the cryptocurrency.
The Pre-Halving Years’ Pattern
Cowen recalls a forecast from the third quarter of the year prior to the halving as he opens the video. Based on past trends, it was predicted that at this time, Bitcoin will drop below its bull market support band. As Bitcoin fell below the support band in line with historical patterns, this pattern — seen in years before the halving — did in fact recur.
For more insights and updates, consider joining our Telegram Channel for reliable crypto signals.
February in the Halving Year: An Important Month
The behaviour of Bitcoin in February of the year of the halving is a major topic of discussion in the video. The author observes a recurring pattern in which this month has seen Bitcoin consistently hover around its bull market support band. This pattern refers to the specific location of Bitcoin at the support band in February of each halving year, rather than whether it is above or below it.
Past Data and Forecasts for the Future
The presenter backs up this remark with historical data. They provide examples from February of 2012, 2016 and 2020, demonstrating that during this month in each of these years, Bitcoin reached the bull market support zone. Reaching the support band at the current levels would indicate a sizable 15% decline in the price of Bitcoin. However, the movement of the support band itself, which may get stronger with time, may have an impact on the pace of descent.
bitc halving
Changes in the Market and Outside Influences
The video also discusses how Bitcoin has behaved after reaching the band of support. Bitcoin was able to hold the support band level in 2012 and 2016, but the pandemic and ensuing recession prevented it from doing so in 2020. These findings imply that external economic variables, such as the status of the economy and Federal Reserve policies, can have a big impact on Bitcoin’s capacity to maintain the support band level.
Ramifications for the price of bitcoin
Cowen emphasises the significance of this pattern and its possible ramifications for future price changes of Bitcoin in his conclusion. It is expected that, as February draws near, Bitcoin will decline to the bull market support band; however, the precise path may differ depending on a number of variables.
For more insights and updates, consider joining our Telegram Channel for reliable crypto signals.

2

Next Bull
Crypto
Cryptocurrency
Cryptocurrency Investment
Bitcoin

2

Follow