The Bitcoin halving is arguably the most important event in the cryptocurrency industry, taking place every roughly four years (210,000 blocks). It aims to reduce the speed at which new BTC is being produced, which essentially reduces the pre-programmed inflation rates and ensures that Bitcoin mining will continue for many more years, even though more than 90% of the total supply has already been mined.

The next such event is scheduled to take place in early April 2024. Given the asset’s history of going on wild rides before, during, and after each of its previous three halvings, crypto analysts have begun speculating on what could transpire in the next year or so.

First Phases: Pumps and Dumps

Whether it’s the hype around the upcoming halving or the potential approval of the US’ first spot Bitcoin ETF (or maybe both), the fact is that BTC’s price has been on the run for the past few months. Just earlier this weekend, the primary cryptocurrency charted a 19-month peak at almost $45,000. Quite an impressive number, given the fact that the asset started the new year at around $17,000.

Popular crypto analyst going by the X handle Rekt Capital indicated that there might be retracements in BTC’s near future, but they could result in a “fantastic Return on Investment” should investors capitalize on them.

By relying on historical data, Rekt Capital suggested that BTC sees another rally approximately 60 days before the halving. This is typically followed by a “pre-halving retrace,” which takes place around the event. In 2016, BTC dropped by just under 40% and by 20% four years later.

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5 Phases of The Bitcoin Halving

1. Pre-Halving period

Approximately 4.5 months remain until the Bitcoin Halving in April 2024

Historically, any deeper retraces that occur during this period tend to generate fantastic Return On Investment for investors in the several…