Bitcoin halving took place on 11 May this year. Since then, Bitcoin has risen by a factor of 2.2, which is more than during the previous cycle. This is evident from data from ChartsBTC on Twitter.
#bitcoin halving index pic.twitter.com/eYM8gxd9Ca
— ChartsBTC (@ChartsBtc) November 23, 2020
Bitcoin well on track
The graph above shows Bitcoin’s rise in the first cycle (blue) and the second cycle (red). Every bitcoin halving heralds the start of a new bull run. So far, bitcoin is still well on track. The current price increase is slightly above that of the previous cycle of 2016 and 2017.
This is remarkable because, in 2016, the bitcoin bull run started more slowly than now. If Bitcoin continues to do this, Bitcoin can rise by a higher factor than during the previous halving cycle.
Analyst PlanB agrees, believing the price will accelerate in January 2021. At that point, he says, we can see “a real jump” marking the beginning of the real bull market. He also calls this phase 5. This is a phase in which institutional parties start to see the value of Bitcoin.
Current #bitcoin price action is nice, but we are waiting for a real jump (like the red arrows early 2013 and 2017). IMO that will be the start of the real bull market, and indeed phase5. January 2021? pic.twitter.com/orzwdCOcvP
— PlanB (@100trillionUSD) November 22, 2020
What is a Bitcoin Halving?
A bitcoin halving takes place approximately every four years. During Bitcoin block halving, the reward of miners is halved. The last halving was from 12.5 bitcoins per transaction block to 6.25 bitcoins. This miner reward is simultaneously the influx of new bitcoins into the market. The bitcoin halving directly influences the new supply of bitcoins and, therefore, also on the price. Because is the new supply falls, and the demand remains the same the price should, in theory, go up.
Each cycle starts higher.
ChartsBTC also shared an interesting chart last week. Each green bar represents four years. For example, the first bar shows the price development from bitcoin to the first halving. The second bar shows the price from 2012 to 2016, and the third bar shows the price from 2016 to May 2020. The last bar will continue until the next halving of 2024.
#bitcoin halving candles pic.twitter.com/mrpmwua1vH
— ChartsBTC (@ChartsBtc) November 18, 2020
The graph above indicates that Bitcoin price can make huge moves up and down, but the long-term trend is still up.
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DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
