Bitcoin post Halving

In the realm of cryptocurrency, few events hold as much significance as the Bitcoin halving. It's a process deeply ingrained in the fabric of the digital currency, impacting everything from its value to its supply dynamics. The history of Bitcoin halving, its implications, and why it's a focal point for enthusiasts, investors, and analysts alike. The new day of a new halving, the fourth halving, yesterday, April 19 2024, will remain in history.

?Origins of Bitcoin:

Before delving into halving, understanding Bitcoin's foundational principles is essential. Introduced by the mysterious Satoshi Nakamoto in a 2008 whitepaper, Bitcoin emerged as the world's first decentralized digital currency. Its groundbreaking feature lies in its limited supply: only 21 million Bitcoins will ever exist. Unlike fiat currencies subject to inflationary pressures, Bitcoin's scarcity is built into its code, fostering a sense of digital gold.

?The Concept of Halving:

At the heart of Bitcoin's scarcity lies the halving mechanism. Every 210,000 blocks mined, approximately every four years, the reward for miners who validate transactions on the network is halved. Initially set at 50 Bitcoins per block in 2009, the first halving occurred in 2012, reducing the reward to 25 Bitcoins. Subsequent halvings in 2016 and 2020 further reduced the reward to 12.5 and 6.25 Bitcoins, respectively.

Now, it is halved again: 3,125 Bitcoins from yesterday.

Historical Context:

The significance of halving extends beyond mere mathematics; it's deeply intertwined with Bitcoin's socio-economic dynamics. Historically, each halving event has sparked fervent debate and speculation. Some view it as a bullish catalyst, citing reduced supply and potential for increased demand driving up prices. Others approach it with caution, wary of its immediate impact on miner profitability and network security.

Implications of Halving:

The ramifications of halving are multifaceted, affecting various stakeholders within the Bitcoin ecosystem. Miners, whose operations rely on block rewards, face a direct hit to their revenue post-halving. Consequently, inefficient miners may be forced out of the market, leading to a consolidation of mining power among larger players. However, the halving also serves as a litmus test, separating robust operations from unsustainable ones.

Investors of Bitcoin:

For investors, halving represents a pivotal moment. Historical data suggests that previous halving events have coincided with significant price rallies, leading many to speculate on a similar outcome in the future. This anticipation often drives increased trading activity and market volatility in the lead-up to and aftermath of the event.

TA for Bitcoin:

In the following super chart, we can observe the end of the crypto winter, in November 2022. Since then, the price is moving in bullish or bearish trends, while little by little, it climbs in the general bullish trend, on the way to the crypto summer, the great bullish movement, which at least traditionally to date, has occurred in previous halvings.

To date, since the end of the crypto winter, the price has had three upward and two downward movements, in the medium term.

Chance or destiny has made the current short-term minimum coincide with the day the halving knocked on the door, April 19.

58K zones as zones not to lose, in this new support that Bitcoin is having, and that could already from here, try little by little, to launch the price upwards, waiting for the new spot ETFs, which come from Hong Kong Kong, next April 29, which will be added to those already existing, while in other countries they are also preparing ETFs to enter the institutional "gold rush... and bitcoin fever"?

Chart shown, 4-hour candles, from 2022 to 2024

BTC · Historical guide to its movement between halving

Continuing with the story, we have a very interesting graph that I created on January 17, 2024, thinking that the halving could be on April 17, 2024.

Finally it was two days later, but I do not modify the data of the 17th on January 19. What is stated in it is clear.

Take a look at it, carefully, calmly, to analyze in detail everything stated.

And remember, that after a halving, another comes, which is estimated for March or early April 2028...

The countdown to the new block reward reduction has already begun.

This content is for informational and educational purposes. There is no consumer protection. Your capital is subject to risks. It is not a recommendation to buy or sell any asset or crypto asset. Please do your own research (DYOR) or contact your trusted financial advisor.

Jesús Sánchez-Bermejo

BELOBABA

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