Comment:
The Bitcoin four-year cycle, known as the halving cycle, revolves around halving events occurring approximately every four years. During these events, the rate at which new Bitcoins are created decreases, leading to a reduction in the supply of new coins entering the market. This reduction, coupled with steady or increasing demand, often results in upward pressure on Bitcoin's price.
The cycle typically follows four phases: accumulation, markup, distribution, and markdown. Smart money investors accumulate Bitcoin during the accumulation phase, anticipating future price increases. The markup phase sees significant price appreciation driven by increasing demand and reduced supply. Early investors then start taking profits during the distribution phase, leading to price consolidation or correction. Finally, the markdown phase involves a period of price decline as the market corrects and prepares for the next cycle.
Historically, Bitcoin's price has experienced substantial increases following halving events, though the magnitude and duration of these movements can vary. Market sentiment and speculation play significant roles, with investors closely monitoring supply dynamics and historical patterns surrounding halving events.
While the four-year cycle provides insight into Bitcoin's historical price movements and market behavior, it's essential to consider it within the broader context of the asset's long-term trend. Bitcoin's price is influenced by various factors beyond halving events, including macro-economic conditions, regulatory developments, technological advancements, and investor sentiment. Therefore, while the cycle offers a framework for understanding Bitcoin's market dynamics, it's crucial to approach it with caution and consider a diverse range of factors when making investment decisions.
The cycle typically follows four phases: accumulation, markup, distribution, and markdown. Smart money investors accumulate Bitcoin during the accumulation phase, anticipating future price increases. The markup phase sees significant price appreciation driven by increasing demand and reduced supply. Early investors then start taking profits during the distribution phase, leading to price consolidation or correction. Finally, the markdown phase involves a period of price decline as the market corrects and prepares for the next cycle.
Historically, Bitcoin's price has experienced substantial increases following halving events, though the magnitude and duration of these movements can vary. Market sentiment and speculation play significant roles, with investors closely monitoring supply dynamics and historical patterns surrounding halving events.
While the four-year cycle provides insight into Bitcoin's historical price movements and market behavior, it's essential to consider it within the broader context of the asset's long-term trend. Bitcoin's price is influenced by various factors beyond halving events, including macro-economic conditions, regulatory developments, technological advancements, and investor sentiment. Therefore, while the cycle offers a framework for understanding Bitcoin's market dynamics, it's crucial to approach it with caution and consider a diverse range of factors when making investment decisions.
Looking at the daily chart, we can see from this point, we formed a falling wedge pattern, moved down to the daily key area and fired back upto that weekly key area that had been attacked previously. Now in my experience, if this was going to sell off, then those trapped traders would not get a chance to exit like price is located now... i feel this is a battle between bulls and bears, and bears are currently defending positions perhaps, who knows... we will never know.
The current PA we have witnessed another falling wedge pattern and broke out to the upside, therefore we can potentially expect some upside movement back into previous range / testing upper resistance. From here we can see price action closely and look for more insights!
OVERWATCH: Both neutral but to upside,
TRENDMASTER: Weekly - To the upside, bouncing off the scalper level.
TRENDMASTER: Daily - Neutral (is red but hasn't really broken lower (white support)
CME GAPS: 34850 & 20650
Balanced price areas: Weekly: 22550-22800 / 42360-44150
Balanced price areas: Daily: 20875-21500