Historical data shows that the price of Bitcoin (BTC) has traditionally declined before halving, and according to analysts, this fourth halving will be no exception.
A crypto analyst using the pseudonym Rekt Capital wrote on his X (Twitter) page, "Historically, Bitcoin has performed pre-halving pullbacks 14-28 days prior to the halving".
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Rekt Capital highlighted that in the days leading up to Bitcoin's 2020 halving, Bitcoin pulled back 20%. Similarly, the price of BTC rolled back 40% after an initial rally ahead of the 2016 halving.
In addition, the analyst believes that in 2 days, the largest cryptocurrency by capitalization will enter the zone where historical pullbacks before the halving began.
It's worth noting that there are just over 30 days left until the halving, and Bitcoin is already trading around 68,200, well below the all-time high (ATH) of $73,780 set on March 14, 2024.
Previously, Rekt Capital reported that Bitcoin's price movement due to the halving forms a cycle that has 4 phases: rally, pre-halving pullback, re-accumulation, and post-halving parabolic growth.
The 4th phase (parabolic growth) historically lasts a little longer than a year (about 385 days). It is during this phase that BTC experiences accelerated growth, but there is already an acceleration in price growth, so this period could be halved.
At the same time, most influencers in the crypto industry expect Bitcoin to continue to grow.
Chris Marszalek, CEO of Crypto.com, said in his interview with CNBC that sharp declines in the price of BTC have a positive effect on the overall uptrend of Bitcoin, as this way the asset eliminates some of the accumulated leverage.
He added that the current volatility in the BTC market is quite low compared to what it was before the previous halving.
At the time of writing, the price of BTC is trading at $68,226, showing an increase of 3.92% in the last 24 hours.
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