Bitcoin halving is near. Over the past week, the price of bitcoin has jumped 12% after testing the $18,000 support.
It seems Bitcoin is in the news again as investors are becoming optimistic about the direction of its price. The sentiment on cryptocurrency has also begun to shift to bullishness. However, there is more speculation about the next bull run in the middle of this new buzz around bitcoin.
The rise of this buzz can be credited to new information about the next halving. In summary, this news reports that the next BTC halving, scheduled to happen sometime around 2024, is now expected in 2023.
What Is Bitcoin Halving
Halvings are not a common topic in the crypto world, especially since they only happen once in approximately four years. Not many people know what it is or what it means. And the ones who do may not fully understand it.
Put simply; bitcoin halvings are a phenomenon in which the mining rewards for mining bitcoin are cut in half.
This halving algorithm was included in bitcoin’s protocol from the beginning to counter inflation and maintain its scarcity.
The relationship between demand, supply, and price states that rare and valuable commodities are expensive. When they happen, halvings catapult the price of bitcoin over the moon.
What Does the Bitcoin Halving Mean for Its Price
According to NiceHash’s data, the next bitcoin halving is expected in about one year and 150 days. This puts the date for this event around late 2023. December, to be exact.
Popular crypto analysts have also commented on this piece of news. Among them is twitter influencer @MartiniGuyYT. In a tweet, the influencer shared his thoughts, on the issue, mentioning that the hash rate (number of block hashes performed per second) of bitcoin has jumped significantly, bringing the Bitcoin halving closer.
Now, a bitcoin halving is the signal of signals. Historically, halvings have always been followed by massive price surges.
The last halving happened in 2020. Back then, the price of bitcoin sat at $8,500. After the halving, the price of bitcoin surged upwards, hitting a high of $27,000 – a 317% increase.
Do Things Look All Good for Bitcoin
Analysts at CryptoQuant have a thing or two to say about this.
While the having may save bitcoin from the bear market, it is currently in favorable price conditions until they are not guaranteed.
According to this analysis, there is a possibility that a pattern on the charts destroys any chances bitcoin has of entering its much-awaited bull run. Greatest_Trader explains his standpoint using the Binary Coin Days Destroyed metric (BCDD).
He notes that prices have historically been observed to crash horribly whenever this metric registers an uptick.
In his words, “currently, the metric has experienced a massive rise as well as the price. Long-term holders might find this rebound an excellent opportunity to distribute their assets and manage their exposure to the market.”
Other metrics corroborate Greatest_Trader’s analysis. A market dip seems to be on its way. A few on-chain indicators, for example, have shown that Bitcoin’s total exchange outflow decreased considerably in the last few weeks. This alone is a bearish signal.
Will Bitcoin Surge
Not every analyst has something bearish to say about bitcoin. A good example is @el_crypto_prof on Twitter.
According to him, one of the best indicators in markets like these is the Market Mastery Divergence (MMD) indicator. Historically, whenever this indicator turns red, it is almost always a buying signal.
This indicator has been shown to work in 2011, 2015, 2018 and 2022
Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)