Bitcoin (BTC) Halving: Here are 5 potential cycles to watch

As the BitcoinHalving approaches, a top market analyst details 5 key cycles to watch.

With only about 100 days left until the upcoming Bitcoin (BTC) Halving, while significant, many in the industry are currently being bewildered by the hype that the US SEC (SEC) may approve SpotBitcoin exchange-traded fund (ETF) products.

Important BitcoinHalving Cycles

However, top Crypto Assets market expert Rekt Capital took the time to reveal the key BitcoinHalving cycles that traders can keep an eye out for as the months of Halving events have passed.

The first cycle of the series is called the pre-Halving period, which is the last 100 days of the final Halving. Rekt Capital believes that the ultimate buy price or bargaining opportunity will arise, as any drawdown during this period will be accompanied by a huge return on investment in the months following the halving cycle.

The second cycle will usher in a “pre-Halving Rebound,” which Rebound will begin about 60 days after the Halving event. Analysts revealed that during this cycle, some investors will actually “buy the hype” to “sell the news”. Such buyers may trigger a post-first Halving pullback because they will take profits before the event.

This cycle now gives birth to the third cycle of “backtracking before Halving”. Looking at Bitcoin’s price history, the pullback before the Halving in 2016 ushered in a 38% depth pullback, and in 2020 it ushered in a 20% depth pullback.

The next cycle after that will be the reaccumulation phase after a few months of the pullback era. This era may resemble the winter of Crypto Assets, as significant results may not be recorded for a long time. However, the final phase, known as the “parabolic rise” phase, will be worth it, as the true impact of the Halving will now be in full swing.

Impact of Bitcoin ETFs

While Rekt Capital’s cycle description relates to the LitecoinHalving that took place in August 2023, the possibility of SpotBitcoin ETF approval could change the narrative this time around.

According to the timeline for approval, if the industry is approved in the coming weeks of January this year, as speculated, institutional acceptance and possible liquidity into the market could invalidate the cycle, especially the drawdown and reaccumulation phase before the halving could be significantly shortened.