What Do The Three Phases Of The Bitcoin Halving Mean?

Heavily-followed cryptocurrency analyst Rekt Capital anticipates a potential market shift, as Bitcoin moves between different phases before its fourth halving event for Bitcoin BTC/USD, scheduled for April 19.

What Happened: In a tweet on April 4, the pseudonymous analyst pointed to three phases of the Bitcoin halving: the final pre-halving retrace, re-accumulation and the parabolic uptrend.

Bitcoin is currently two weeks away from the halving and has pulled back by 18% over the past couple of weeks. In 2016, this pre-halving retrace was -38% and lasted three to four days, while in 2020 it was -20% and continued for 56 days.

The pre-halving retrace is mainly to offer one “final bargain-buying opportunity,” form the range low of the future re-accumulation range and set up the re-accumulation phase, the analyst stated.

This phase can last multiple weeks and even up to 150 days, and investors may face boredom, impatience and disappointment due to a lack of major results in their Bitcoin investments.

Finally, the parabolic uptrend lasts just over a year but may be cut in half if the current cycle is an accelerated one, according to Rekt Capital.

Also Read: ‘Forget Bitcoin Price Targets’: Crypto Expert Says 30% Of Cycle Top Metrics Are ‘High Risk’

Why It Matters: Historically, the Bitcoin Halving event has had a significant impact on Bitcoin's price and cuts the reward for mining new blocks.

Heavily-followed trader and investor Crypto Jelle said the halving’s impact will make the wait worth it.

Another trader, River, states in his post on X that Bitcoin prices have performed well in the one and a half years ahead of halving.

Bitcoin is down around 3.6% on the week, trading at $67,880 at the time of writing.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: Top Crypto Trader Sees ‘Tremendous Buying Opportunities’ In Altcoins, Shares His Top 10 Picks

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