Bitcoin is still 200 days away from halving, which is a supply shock. Historical patterns indicate that once it occurs, prices often rise and even break past historical highs
Bitcoin is still 200 days away from halving, which is a supply shock. Historical patterns indicate that once it occurs, prices often rise and even break past historical highs. In the price chart shared by 'the scalpingpro' on X on October 9th, analysts seem to indicate that the world's most valuable tokens are not only in the early stages of breaking the 2021 high, but also reaching a new high after the network halved in 2024.
Early signs of a bull market rebound: 200 days before halving
So far, the trader pointed out that Bitcoin has fallen by 60% from its historical high in 2021. Analysts say that this pattern seems to replicate the same pattern as before the halving of Bitcoin in 2019. Then, just like now, Bitcoin has fallen by 60% from its peak of around $20000 in 2017.
As shown by historical patterns, Bitcoin prices often rebound strongly after a significant drop from previous highs. The momentum of halving events often accelerates these increases, pushing prices further away from cyclical lows.
Every four years, Bitcoin will be halved, and the rewards for mining Bitcoin blocks will be halved. This feature is built into the protocol to slow down the issuance of new Bitcoin. As shown in the previous price trend, due to the decrease in the number of tokens released into circulation during the halving period, the inflation rate has decreased, which has supported prices.
Although the impact of halving has been fully studied, a series of events that occurred before this event appear to be stimulating demand. As mentioned earlier, in the 200 days before the halving in 2016 and 2019, Bitcoin fell by about 60% from its historical high.
The price of the asset was at a similar price point 200 days before the halving. For this "almost perfect" event replication, "the scalpingpro" is optimistic that the token may follow familiar patterns of past cycles.
Bitcoin rose to $48000 before halving?
As expected, once the halving occurs, there may be a surge to historical highs or higher. However, prior to this, another analyst believed that the token could rise to $48000.
This analysis is based on the key support and resistance levels formed by Fibonacci's retreat. The analyst is confident that Bitcoin will retest 61.8% of the recent high and low point fluctuations between 2021 and 2022, and once it rebounds, Bitcoin will reach $48000.
The halving of momentum and the shift of various indicators from bears to bulls will further drive competition at this level, including oversold trading volume on major exchanges of the Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Equilibrium Index.
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