- Bitcoin’s recent price movement reflects patterns before previous halvings, says analyst.
- Bitcoin’s dominance has decreased to 51%, a negative macro indicator.
- Bitcoin’s halving in 2024 could trigger significant bull markets.
Crypto analyst Miles Deutscher has observed that the recent lateral movement of Bitcoin’s
Deutscher mentioned in a tweet that it is typical to observe range-bound trading from the second to the fourth quarter of pre-halving years. A bullish trend around November 21st usually follows this.
The forthcoming halving of Bitcoin is anticipated to occur in early 2024, reducing its block reward by 50%. Historically, such halvings have triggered significant bull markets.
Nonetheless, Dan Gambardello, the founder of Crypto Capital Venture, pointed out the decreasing dominance of Bitcoin as a negative macro indicator. Currently, at approximately 51%, the dominance of BTC is significantly lower than the 70% it held during the equivalent phase of the previous cycle.
Historically, the ongoing consolidation aligns with Bitcoin’s typical pattern before its inherent supply shocks. This indicates that the leading cryptocurrency is still following the trajectory of previous cycle blueprints.
Bitcoin halving is a periodic occurrence that transpires roughly every four years. In this event, the incentive provided to miners for validating Bitcoin transactions is cut by half. This decrease decelerates the production of fresh Bitcoins, impacting the total quantity of Bitcoin available in the market.
The final projected halving is forecasted to occur in 2140 when the total quantity of Bitcoins in circulation is predicted to hit its cap of 21 million. This halving process is engineered to enhance Bitcoin’s rarity and its resilience against inflation.
As we draw closer to the halving, Bitcoin’s price movements reflect historical patterns, providing optimism for those expecting significant returns. However, the declining dominance suggests potential hazards if mainstream interest does not emerge.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
