At a superficial glance, it is difficult for an inexperienced crypto investor to identify a clear pattern between the reduction of the reward for bitcoin miners and the subsequent price change. However, when studied in detail within a limited time frame, the correlation can be traced quite clearly, said the founder of Bits.media:
"If we divide the chart of exchange rate changes into periods between halves, then the cycles will become quite obvious and similar to each other. A lull after halving, a sharp rise in the first half of the cycle, a bottom in the second half of the cycle and halving again."
Experienced traders are preparing in advance to reduce the free supply of BTC on the eve of halving. Moreover, at the moment the event does not affect the price trajectory of the asset. Since the date is predictable, and the impact is embedded in the price at auction, Therefore, there is no sharp jump in the price of BTC at halving moments, the expert showed on the chart:
From a trading point of view, everyone is interested in when to buy, when to sell, and also how predictable and cyclical this phenomenon is.
"According to my observations, the minimum at the beginning of the VTS cycle was always above the bottom of the last cycle anyway, so the optimal strategy would be to buy at the bottom of the last cycle and sell at the edges of the next one," Ivan Tikhonov said.
Earlier, Israeli philosopher and author of the bestseller Sapiens Yuval Noah Harari said that bitcoin investors base their choice on a progressive distrust of traditional public and financial institutions.