Bitcoin halving is one of the most significant events in the Bitcoin life cycle. A bitcoin halving event happens every four years, which reduces the Bitcoin supply in half and causes the Bitcoin price to rise higher. However, the “Bitcoin mid-halving correction” is also an important event between the previous and upcoming bitcoin halving that determines the upcoming price trends. The next Bitcoin mid-halving is scheduled next week on April 11.
Will the Bitcoin (BTC) Price Follow Historical Price Trends?
On-chain analytics firm Santiment announced in a tweet on April 5 regarding the next Bitcoin mid-halving event on April 11. As per historical data, the Bitcoin (BTC) price usually reaches an all-time high price within 515-545 days after a Bitcoin halving. After reaching an all-time high, the price decreased until the point known as “mid-halving correction,” from which the price goes under a bear market due to a strong resistance level.
Bitcoin (BTC) Mid Halving. Source: Santiment
Interestingly, it took 518 days for the Bitcoin price to peak at $68,789 since the last Bitcoin halving in May 2020. Since then, the price has gradually decreased to move in correction between the $35,000-$45,000 range. Moreover, the Bitcoin (BTC) price is currently facing a strong resistance level of $50,000 near the mid-halving event on April 11. Thus, the ongoing scenario looks exactly similar to the previous price trends.
Could this push the Bitcoin price to move downwards into a bear market? Or else, the price will rally to stabilize itself above the $50k level, nullifying the historical price trend scenario.
How the Bitcoin Mid-Halving is Different This Time
The Bitcoin (BTC) price is currently trading at 46,662, up nearly 2% in the last 24 hours. Moreover, the circulating supply has reached 90%, with the BTC supply surpassing 19 million recently.
On-chain data suggests this Bitcoin cycle is different from its previous cycles. During the previous bitcoin mid-halving, the daily active addresses were 600k, and now it’s almost 900k. Moreover, as per Glassnode, Bitcoin is undergoing a very healthy redistribution of supply due to a decrease in long-term holders and an increase in short-term holders.
Therefore, this bitcoin cycle is going to be different amid whale’s accumulation and record bitcoin adoption.
Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.