The famous cryptocurrency analyst Benjamin Cowen did it sparked optimism within the crypto community with his recent tweet. According to him, Bitcoin (BTC) is poised to enter a bull market ahead of the highly anticipated 2024 halving event. Cowen referred to historical patterns, saying that Bitcoin tends to approach the bull market support band in January or February of the halving year.
The analyst explained that the model of Bitcoin’s first halving predicts Bitcoin to consistently reach the bull market support mid-range (20-week SMA and 21-week EMA) in January or February of the halving year. This observation has triggered discussions among traders and enthusiasts about the potential implications of historical trends on future market dynamics.
#Bitcoin, early halving model of the year –
Bitcoin always went to the bull market support range (20W SMA and 21W EMA) in January/February of the halving year.
Will it be different this time? pic.twitter.com/SgE2PjtCZ9
— Benjamin Cowen (@intocryptoverse) January 17, 2024
Bitcoin halving effect
The next Bitcoin halving is scheduled for April 2024, marking a significant event in the world of cryptocurrencies. During a halving, block rewards for miners are reduced by 50%, with the next change set to decrease the reward from 6.25 BTC to 3.125 BTC. This adjustment is expected to affect the supply and demand dynamics of Bitcoin, potentially leading to price fluctuations.
Traders are closely monitoring the situation, anticipating that the reduced supply of newly created coins could have an impact BTC prices. The historical precedent of bull markets following halving events has fueled speculation that Bitcoin may be on the verge of a significant upward move.
Despite the current price of Bitcoin standing at $42,723, reflecting a marginal decline of 0.10% over the past 24 hours and a decline of 6.06% over the past week, the increase in trading volume suggests increased market activity. Trading volume increased by 15.19% over the past 24 hours to $24,172,687,665.
Analysts and investors are keeping a close eye on Bitcoin’s performance, with the potential for a bull market rally becoming a focal point of discussion within the cryptocurrency community. The unique dynamics surrounding halving events, along with historical patterns, add an air of anticipation as Bitcoin approaches the threshold of its next major milestone in April 2024.
