Bitcoin halving, a recurring event set to take place shortly, has sparked immense optimism among crypto market traders and investors globally as historical data illustrates a tilt of bullishness towards altcoins post-BTC halving, curating a tidal wave of market optimism. Amid this optimistic chronicle, crypto market enthusiasts expect this year’s halving event to fuel a rally in altcoins. Aligning with this sentiment, XRP, a Ripple Labs-backed token, and BTC could witness a significant market uptrend following this year’s halving. Here’s a closer look into the potential factors that underscore a looming price rally for BTC & XRP.

Historical Data Fuels Market Optimism

Intriguingly, as seen previously, following the 2020 BTC halving that occurred on May 11, Bitcoin witnessed a consolidation before a pump post-halving. Market charts for BTC illustrate that the token witnessed a period of sideways trading following the 2020 halving. However, as of October 2020, Bitcoin embarked upon an upward trajectory to unprecedented levels.

Concurrently, altcoins mimicked this rally, as also seen by XRP’s market chart. Notably, XRP, too, witnessed a period of sideways trading, mirroring a consolidation similar to BTC. Similarly, mimicking BTC’s upward trajectory, XRP gradually gained upward momentum as of late October 2020, and finally, as of November of the same year, even the Ripple-backed token embarked upon a remarkable pump.

Although traders caution that past performances don’t always guarantee future price movements, it is worth noting that ever since the first BTC halving that occurred on November 28, 2012, followed by other halvings, the BTC token has witnessed remarkable pumps in its price, with altcoins gradually following it in every halving event.

Meanwhile, a renowned crypto market analyst further spotlighted vital insights on the upcoming BTC halving and the token’s price movements.

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Bitcoin Halving: A Three-Phase Process

According to a renowned crypto market analyst, Rekt Capital, the BTC halving typically unfolds in three phases. These phases encompass a final pre-halving retrace, re-accumulation, and a parabolic uptrend.

The final pre-halving retracement involves a dip in Bitcoin’s price before the halving event, as seen in previous BTC halvings. “This Pre-Halving Retrace was -18% deep whereas in 2016 it was -38% and in 2020 it was -19% deep,” the analyst stated.

Further, the re-accumulation phase kicks in after the pre-halving dip, wherein the token’s price stabilizes and forms a range. This phase can last several weeks to months, leading up to the halving and continuing after it, the analyst added.

Simultaneously, the parabolic uptrend occurs, in which BTC breaks out of the re-accumulation range and enters a phase of accelerated growth, a.k.a. the parabolic uptrend. This, collectively, adds up to the optimism orbiting a pump for BTC post-halving, accompanied by a mimicked pump in XRP.

#BTC

3 Phases of The Bitcoin Halving

1. Final Pre-Halving Retrace

The Pre-Halving Retrace has already occurred and is in the books

This Pre-Halving Retrace was -18% deep whereas in 2016 it was -38% and in 2020 it was -19% deep

This Pre-Halving Retrace was the final… pic.twitter.com/xNqAL2cWd7

— Rekt Capital (@rektcapital) April 12, 2024

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The post XRP & BTC Could Bounce After Bitcoin Halving appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am