🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Crypto Analyst Explains Five Phases of The Bitcoin Halving

Published 30/10/2023, 16:21
© Reuters Crypto Analyst Explains Five Phases of The Bitcoin Halving
BTC/USD
-

Coin Edition -

  • Rekt Capital has analyzed the five phases of the Bitcoin halving.
  • The phases include Pre-Halving Period, Pre-Halving Rally, Pre-Halving Retrace, Re-Accumulation, and Parabolic Uptrend.
  • Pre-Halving Retrace instills Fear, Uncertainty, and Doubt (FUD) among investors.

Rekt Capital, a renowned crypto trader and analyst, has analyzed the five phases of the Bitcoin halving. The analyst shared his thoughts on X (formerly Twitter), explaining what he expects to happen in the remaining days before the upcoming Bitcoin halving event.

The crypto analyst divided the period before the Bitcoin halving into five phases: Pre-Halving Period, Pre-Halving Rally, Pre-Halving Retrace, Re-Accumulation, and Parabolic Uptrend. He shared a screenshot of his technical analysis, using it to explain the five phases of Bitcoin Halving.

Source: X.com (5 Phases of Bitcoin Halving)

According to Rekt Capital, the pre-alving rally is the phase where investors seek opportunities to enter the market. He noted that from a historical perspective, any deeper retraces occurring during this period tend to generate fantastic returns on investment for investors in the several months after the Halving.

The analyst noted that the next phase, the Pre-Halving Rally, occurs approximately sixty days before the Halving. According to him, this phase is initiated by investors who “Buy the Hype” to “Sell the News.”

After the Pre-Halving Rally comes the Pre-Halving Retrace, a phase that Rekt Capital said tends to occur around the actual halving event. According to him, this event has a way of instilling Fear, Uncertainty, and Doubt (FUD) among investors. They question whether the Halving was a bullish catalyst on price or otherwise. The crypto trader cited examples with the 2016 and 2020 Halving events, when Bitcoin retraced 38% and 20%, respectively.

Rekt Capital noted that the Pre-Halving retrace precedes a multi-month re-accumulation. He explained that during this phase, many investors get shaken out due to boredom, impatience, and disappointment with the lack of significant results in their BTC investment in the immediate aftermath of the Halving.

The final phase is the Parabolic Uptrend, which the analyst described as the period when Bitcoin experiences accelerated growth to all-time highs (ATH). According to him, this phase is characterized by a breakout from the re-accumulation area into the parabolic uptrend.

The post Crypto Analyst Explains Five Phases of The Bitcoin Halving appeared first on Coin Edition.

Read more on Coin Edition

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.