Crypto analyst Rekt Capital says Bitcoin is likely to bottom in Q4 this year, based on historical details of a key Bitcoin event.
The Bitcoin network undergoes what is called a “halving” approximately every four years – a period at the end of which the network’s rewards for miners are halved.
Bitcoin could bottom in Q4 2022
As noted by the analyst, BTC price has reached a bottom well before the halving, as observed over since 2015.
“In 2015, BTC bottomed out 547 days before the halving. In 2018, $BTC hit its lowest level 517 days before the halving (March 2020 crash).
The bottoms preceded the July 2016 block reward halving, which reduced miner rewards from 25 BTC to 12.5 BTC. The 2018 bottom preceded the third halving, which occurred in May 2020 and cut block rewards from 12.5 BTC to 6.25 BTC.
Based on previous halves, Rekt notes:
“If Bitcoin hits its 517-547 day low before the next April 2024 halving… then the bottom will occur in the fourth quarter of this year.
On when this is most likely to be and what happens to Bitcoin price next, the analyst suggests October or November. And Bitcoin could see several price scenarios, including a “slow bleed” and accumulation.
“But BTC has fallen so much lately that it’s hard to think the bottom won’t be hit sooner. How could we get a bottom in the fourth quarter of 2022? Slow bleeding, relief, lots of consolidation,” he tweeted.
He thinks the consolidation to extend as far as December 2022.