Bitcoin is encouragingly strong at the time of writing, trading above $58,000 but still inches away from the critical psychological level of $60,000.
After a volatile week, stability is a huge boost for bulls. Although pockets are in place, sellers are still in control. In order to shape the uptrend and allow buyers to build momentum, bulls need to reverse the gains from July 4th and 5th.
Is This the Right Time to Buy Bitcoin?
Amid this bullish optimism, an analyst at X said said BTC is at a sweet spot if we’re to go by the price action post-halving over the years. In the post, the analyst said that Bitcoin typically prints higher highs and resumes its uptrend 80 days after the halving.
On April 20, the world’s most valuable network halved its miner rewards, cutting them from 6.25 to 3.125 BTC. While traders expected prices to rise immediately, that wasn’t the case.
If anything, the correction from the March 2024 highs continued, with prices closing around $56,500 in May. The downtrend continued into June, with more bears in the first half of July, when BTC crashed to a low of $53,500.
Exactly 80 days have passed between the Halving date late April and July 9. Bulls usually gather during this period in preparation for a parabolic bull run.
The re-accumulation phase that the analyst chooses is also strategic, especially for intelligent BTC investors. After the halving and amidst reduced rewards, weak miners tend to capitulate. As they leave and sell their inventory, prices fall in tandem.
Is the capitulation of Bitcoin miners over?
Facts reveals that weak miners tend to close within six to ten weeks after the Halving event. Their capitulation, as explained, coincides with sharp price increases.
Towards the end of last week, it marked the end of the 10th week of miner capitulation, the longest since the 2012 Halving event. If the price action lines up with historical performance, then the dumping phase is likely over and Bitcoin is in the early stages of a parabolic rise.
Santiment data shows that bearish sentiment among Bitcoin traders on leading social media platforms like X and Telegram is at its highest in over a year. Aggressive traders can take a contrarian position, loading up on these extreme fear, uncertainty, and doubt (FUD) levels on every dip.
Main image from Canva, chart from TradingView