Next Crypto Bull Run and Bitcoin Halving

Bitcoin price moves in recurring patterns of highs and lows and
these price patterns are called Bitcoin market cycles. Each Bitcoin market
cycle is 39 to 46 months long and during this period Bitcoin records a local
low and a new all-time high. Since the Bitcoin halving period is almost the
same as Bitcoin Price cycles, it is considered that Bitcoin halving plays a key
role in those cycles. Bitcoin halving is divided into many phases and each
phase has a history of overcoming and controlling the price movements of
Bitcoin and ultimately the entire crypto market. The altcoins might show a different behavior due to some specific events like the Hard or Soft Fork of a coin.

Bitcoin halving means 50% depreciation in the miners’ fees
or rewards they receive for providing computational power to validate crypto
transactions. After every 4 years, this reward for mining bitcoin is cut in half.
Now that another Bitcoin Halving is approaching in April 2024, it is expected
to influence the price of Bitcoin and complete the Bitcoin
market cycle.

5 Phases of Bitcoin Halving:

Approximately we are 5 months away from Bitcoin Halving in
2024 and this is the time when the halving period starts to impact the price
and funds flow in and out of Bitcoin. There are precisely 5 phases of Bitcoin Halving:

Pre-Halving period

We are in pre halving period now and this is where only
diamond hands get in. The Price of Bitcoin after this phase slightly drops and usually
paper hands would sell off their holdings. Buyers in this phase get the maximum
Return on Investment ROI. Bear in mind that, as soon as this phase ends, the price
drops but this bearish rally is considered temporary followed by a strong
bullish wave.

Pre-Halving Rally

In the Pre-Halving Rally Phase, the halving hasn’t started
yet, and the impact of it starts to appear in the bullish candle form. This period
of Bitcoin halving starts in February 2023, nearly 60 days prior to the halving
event.

This period is termed as “Buy the Hype” by crypto investors however,
this is not the actual bull run of the Bitcoin halving or Bitcoin market
cycles. This period lasts 63 days in the last Bitcoin Halving event and it is shown
in the above chart in the blue area.

Pre-Halving Retraces

Due to an increase in buying pressure, the price of bitcoin
enters an overbought situation and that’s when Pre-halving retraces start. These
retraces (red area) mean paper hands are trying to cash out their profits. In
2016, these retraces were as deep as 38%. Since halving occurs in this phase,
many analysts use these retraces to debate that Halving is not a bullish price
catalyst – and they may be wrong.

Re-Accumulation

This same retrace zone turns into an accumulation zone (red
area) as new buyers enter the trade due to positive sentiments and technical
indicators. This accumulation period may be months long but it’s the quiet
before the storm. After this multi-month accumulation zone, the price of
Bitcoin finally enters the last and final phase.

Parabolic Uptrend

After a positive breakout from this support and resistance
play of the accumulation zone, the price of Bitcoin shoots to its all-time high
in the Bitcoin Price Cycle (Green Area). This uptrend uses Bitcoin Halving, indicators,
and price history as a bullish catalyst to pump the price of Bitcoin and alts both
to new highs.

This is where the impact of Bitcoin halving ends but the
The Bitcoin price Cycle is still at play.

The phases of the Bitcoin Price Cycle:

Just like the Bitcoin halving, the price of Bitcoin also goes
through a cycle of highs and lows called the Bitcoin Market Cycle. Each cycle
is 4 years long and has higher lows and higher highs recording a new all-time
high every time.

What are these phases of the Bitcoin Market Cycle and how do
they are impacted by Bitcoin Halving? Let’s try to break it down and answer
these questions.

Accumulation

The accumulation phase of Bitcoin tests both investors and
traders as the direction of Bitcoin price is unclear and there’s not enough volatility.
The investors don’t invest at this moment in hopes of another dip and getting a
better buying rate. Likewise, since the price is not moving much, retail
traders prefer altcoins with low marketcap.

The accumulation phase accumulates money to build the base
for a bullish wave. Investors and blockchain companies jump in with their funds. The price moves sideways with negligible signs of upward
movement. This phase can last up to several months and offers the best ROI to
the investors.

Breakout

In this phase of the Bitcoin market cycle, the price of Bitcoin
starts to break above the resistances and record local highs. Due to bullish
sentiments in the market, more traders and investors jump in with fresh cash
inflow and the price of Bitcoin eventually enters a parabolic region.

Parabolic

This is where bulls rule! The Parabolic phase in the Bitcoin
The price Cycle is considered a zone of major gains and green bullish candles. This
zone appears nearly after 1 year of Bitcoin halving and lasts as long as the
bearish phase.

Correction

In this phase of the Bitcoin Price Cycle, the price of
Bitcoin and almost all altcoins start to dwindle and reach a local low of the cycle. Most of the top Blockchain projects were developed in the bearish season.
This is when the crypto winter starts and lasts up to 25 to 30 months. We are
in the correction region now which is going to shift to the accumulation zone
after Bitcoin halving in April 2024.

Key Takeaway:

Bitcoin Halving impacts the price cycles of Bitcoin and acts
as a catalyst to pump the price. Both events are correlated and due to the “Buy
the Hype” slogan coined by traders, Bitcoin price records a new high every
time. Is Bitcoin going to repeat the cycle this time, or will there be a
disruption? Let the time decide this.