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Getting the Maximum Benefit of The Bitcoin Halving 2024: When to Invest 

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Getting the Maximum Benefit of The Bitcoin Halving 2024: When to Invest

The post Getting the Maximum Benefit of The Bitcoin Halving 2024: When to Invest  appeared first on Coinpedia Fintech News

Everyone is buzzing about the upcoming Bitcoin Halving! Undoubtedly, traders and investors in the crypto world are super excited about it. But why all the hype? And is now a good time to jump into Bitcoin? These are the prime ones among the burning questions on everyone’s minds. So, let’s dive into some key questions you need to know about this sensational event. 

But first, let’s break down what Bitcoin Halving really means. 

1. Bitcoin Halving: What’s It    

Bitcoin halving is like a special event that happens regularly in the Bitcoin system. It occurs approximately every four years, and there is a simple reason behind this timing. Basically, it happens after every 210,000 blocks of Bitcoin transactions are processed. Since it takes about 10 minutes to process every block, it adds up to roughly four years to complete 210,000 blocks.

1.1. Why Bitcoin Halving is Important  

Now, why is Bitcoin Halving such a big deal? Well, it is because of its impact on Bitcoin miners, the folks who use their computer power to process Bitcoin transactions and earn new Bitcoins. During a halving, the number of new Bitcoins miners get for processing transactions gets cut in half. For instance, right now they get 6.25 Bitcoins per block, but after the upcoming halving, it will naturally be reduced to 3.125, which is the half of 6.25. This means miners have to work twice as hard to earn the same amount of Bitcoin. 

1.2. How Does Bitcoin Halving Impact Crypto Traders 

The big question at this stage is how does Bitcoin Halving affect Bictoin holders, including crypto traders and investors? Well, indirectly, it could make Bitcoin more valuable. You see, when the supply of Bitcoin decreases because of halving, and if the demand for Bitcoin stays the same or goes up, its value tends to increase. 

So, in short, it is clear that we are heading into a really positive time for Bitcoin – a bullish trend, but to make the most of it, it is crucial to know when to buy and sell Bitcoin.

2. Prime Stages of Bitcoin Halving 

To understand when to invest for getting maximum benefits of halving, crypto traders should know its prime stages.

Pre-Halving, Halving Day and Post-Halving are the three prime stages that concern a crypto investor or a crypto trader. 

  • Pre-Halving

This stage, which occurs before the actual halving event, is a period of anticipation and speculation among investors and traders as they try to predict the potential impact of halving on Bictoin’s price.

  • Halving Day 

This stage occurs on the day when the halving event occurs. It naturally generates a lot of attention and excitement.

  • Post-Halving 

This stage, which immediately following the halving event, is a critical time for crypto traders and investors as they observe how the market reacts to the reduced supply of newly minted Bitcoins and adjust their strategies accordingly. 

Bitcoin halving is expected to take place sometime between 19th April and 21st April, 2024. This means that we are at the late Pre-Halving stage – the final days of the Pre-Halving stage.

3. Which is the Right Bitcoin Halving Stage to Invest   

It is difficult to say which is the right stage to invest in because each stage comes with unique challenges and opportunities. 

  • Investing before the halving event can be attractive for those anticipating a price increase due to the reduction in new supply. However, it also carries higher uncertainty and volatility as speculation drives market movements. For instance, shortly after the halving occurred in July 2016, Bitcoin’s price experienced a significant correction.
  • Some investors prefer to wait until the halving event occurs to assess its immediate impact on the market. This may offer more clarity but could also result in missing out on potential gains if prices surge rapidly, For example, following the halving event on May 11, 2020, Bitcoin’s price experienced a rapid and substantial surge in the days and weeks that followed. Within hours of the halving, Bitcoin’s price began to climb.  
  • Investing after the halving event allows you to observe how the market reacts to the reduced supply of new Bitcoins. Prices may experience volatility initially, but some investors see this stage as an opportunity to buy at potentially lower prices if there is a temporary dip. For instance, after the halving event in July 2016, Bitcoin’s price initially experienced some volatility. In the months that followed, the price underwent a significant correction. During this period, some investors saw it as an opportunity to buy Bitcoin at lower prices. Their foresight was rewarded amply as the price gradually rebounded. 

4. Is This The Right Time to Invest in Bitcoin 

At present, BTC’s price is around $66,122. At the beginning of the year, that is on 1st January, 2024, it was nearly 44176. 

4.1 Basic Bitcoin Analysis

Bitcoin saw $42.74 billion in trading volume over 24 hours. With a total circulating supply of 19,683,268 BTC and a mx supply of 21,000,000 BTC, it hit an all-time high of $73,717.96 on March 14, 2024. The 50-day SMA at $66,794.60 indicates short-term trends, while the 200-day SMA at $46,248.73 offers a broader view. 

Technical indicators show mixed signals: bullish crossovers in short to medium term SMAs, but long-term bearish trends. Volatility is neutral, RSI is neutral, and MACD indicates slight downward pressure, but bullish sentiment persists with Stochastic K in bulls zone and healthy MFI participation at 57.23.

Endnote 

Bitcoin coin symbol
Btc
Bitcoin
$62.547
price
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decrease symbol0.84959%
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TRADE NOW

Navigating the Bitcoin halving requires careful consideration of its stages and market dynamics. Whether investing before, during or after the event, each stage presents unique opportunities and challenges. With Bitcoin’s current price around $66,122 and mixed technical indicators, investors must assess their risk tolerance and investment goals. Ultimately, staying informed and adopting a strategic approach can help maximise the benefits of the Bitcoin halving in 2024.

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