In the constantly evolving world of cryptocurrency, understanding the dynamics of Bitcoin halving is crucial for investors and enthusiasts alike. Therefore, Rekt Capital, a crypto analytics firm, has revealed its opinion on the phases of Bitcoin halving in 2019, to serve as a reference for the upcoming halving in 2024.
- Pre-Halving Period (Orange)
Around 189 days before the 2020 Halving, Bitcoin experienced a significant retracement of -38%. This sharp decline was followed by a brief relief rally, which formed a new Lower High resistance level (black).
Next, Bitcoin experienced another significant retracement, this time falling by -63%. This decline was largely due to the unexpected Black Swan event, the COVID-19 market crash.
During this tumultuous period, Bitcoin managed to form a Macro Higher Low (black), despite significant downside wicking below it. More importantly, the weekly candle closing remained above this level.
The Pre-Halving Period is characterized by significant volatility, with many opportunities for retracements and relief rallies. This phase continued until just two months before the May 2020 Halving.
- Pre-Halving Rally (Light Blue)
After reaching its lowest point at the Macro Higher Low (black), Bitcoin began an almost uninterrupted uptrend. Its price surged, regaining the highest level it had ever reached before the COVID-19 pandemic hit.
- Pre-Halving Retracement (Dark Blue Circle)
However, just before the Halving itself, Bitcoin experienced a retracement of -20%. This decline marked a brief pause in its upward journey.
- Post-Halving Re-Accumulation (Red)
After the Pre-Halving retracement, Bitcoin entered a consolidation phase that lasted for 10 weeks. During this period, Bitcoin prepared for a breakout that could allow it to revisit the 2019 high. When attempting to revisit it, Bitcoin faced a rejection of -21% from this resistance level.
Despite setbacks, this resistance appeared to weaken and was unable to hold Bitcoin for much longer.
- Post-Halving Parabolic Uptrend (Green)
Finally, Bitcoin managed to break through the resistance formed in 2019 (red). This breakthrough marked the beginning of the Parabolic Phase in the Bitcoin Bull Market, where the cryptocurrency surged into a strong uptrend.