The latest installment of his video Rekt capital, the world’s leading crypto analyst, has released an update to YouTube that delves into the dynamics of Bitcoin’s halving. The expert argues why the market is yet to price the halving, which will occur in December. took place on April 19. Rekt Capital, based on data and patterns from the past, provided an analysis that analyzed Bitcoin’s price movement post-halving. It suggested there are still significant growth phases ahead.
Why Bitcoin Halving Has Not Been Priced In
Rekt Capital started by reviewing the impact that Bitcoin halves have had in the past. These halves occur every four years, and they reduce by half the reward block rewards received by the miners. If demand is constant or even increases, this constriction of supply will typically lead to significant price hikes. “The Bitcoin halving is not priced in,” Rekt Capital argued, noting that every previous halving had led to an upswing that reached and even exceeded previous highs.
“The halving every four years always precedes a fantastic surge in Bitcoin’s price action towards new all-time highs,” He said. It is clear that this pattern has been repeated over and over again. post-halving market dynamics Markets are able to predict certain trends, but they remain complex enough that some of them may be unexpected. “Two phases remain in the cycle: The Post-Halving Re-Accumulation phase (red) and the Parabolic Rally phase (green),” He stated.
Read Related Articles
Rekt Capital, focusing on the phase of reaccumulation that follows every halving traditionally, highlighted that it typically lasts around 160 days. The market will often consolidate before breaking out into a parabolic rally during this time. “We are currently in a reaccumulation period again in this cycle. This is post-halving reaccumulation,” He stressed the importance of the phase as it sets the scene for the next bull run.
The analyst explained the differences between the past and current cycles. “This cycle is exhibiting an accelerated rate, with new all-time highs appearing 260 days prior to the halving, a first in Bitcoin’s history,” He explained. The deviations show that although historical patterns are a guide, market behaviour can be affected by new dynamics each time.
Read Related Articles
Rekt Capital was aware of the possible risks and corrections to the market that might occur. He cautioned against the rejection that is often experienced after reaching the highest ranges of prices post-halving, as seen in past cycles. “Every time we’ve seen an initial attempt to get to the range high resistance after the halving, that first attempt after the halving is one that rejects,” He explained. It is important for investors to temper their expectations of immediate gains following the halves, by taking a more realistic look at possible short term retracements.
He also touched on the subject of decreasing returns over successive cycles. Bitcoin investors are very aware of this issue. The rate of growth in each cycle has been slower, even though the peak is higher. The rate of growth has slowed, even though each cycle’s peak is higher than the one before. $250,000 He predicted that the increase might not be as dramatic this time.
Rekt Capital has maintained its positive outlook, saying that although the rapid growth of the early cycle may not happen again, Bitcoin’s upward trend post-halving will remain intact. “This is going to be the most parabolic phase of the cycle where we see those gains come very quickly in a short space of time,” He concluded by affirming that Bitcoin investors have a lot of opportunities ahead.
BTC was trading at $68.561 as of press time.
Featured image created with DALL·E, chart from TradingView.com
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: www.newsbtc.com