The most popular issue in the cryptocurrency industry at the moment is the halving of Bitcoin. However, Chris Burniske, a former analyst with Ark Invest, believes there is more to the tale. His examination of the last Bitcoin cycle serves as a helpful reminder that the halving and cycle movement of Bitcoin are more complicated than they may initially appear.
The graph illustrating the cycles of Bitcoin after its halving shows a trend of increases and decreases over a number of years. Post-halving periods frequently begin with a spike and then a cooling-off period. We are at a moment right now when development has slowed down, making it easier for “lettuce hands”—those who are fast to sell—to let go. However, past events indicate that people that persevere may be able to predict more successful times to come.
Based on the present price chart of Bitcoin, resistance is located at $67,000, while support is found near $50,000. Bitcoin may try to retest its earlier highs around $67,000 if it manages to remain above this support level and rises. A break above it may indicate the beginning of a fresh rally. Before there is a noticeable rebound, there may be more declines if it breaks below the support.
Burniske’s remark is appropriate given the current state of the market. The race that follows can put investors’ mood to the test, since the halving is sometimes just the beginning. The low point in the present cycle suggests an accumulation phase, when proponents of Bitcoin’s long-term worth may perceive opportunity where others see stagnation.
The most important lesson for investors to learn is that while halving has fueled Bitcoin’s rise, growth is not assured immediately before or after halving. It will take time to determine whether this consolidation period is the calm before the next upswing.
