Recent sideways Bitcoin price action mirrors past cycles heading into upcoming halvings, according to crypto analyst Miles Deutscher.
#Bitcoin’s recent price action is still mirroring the last 2 cycles.
This is typical sideways price action that occurs from Q2-Q4 in pre-halving years.
November 21st has historically been the key pivot point for a bullish shift. Will be interesting to see how $BTC responds. pic.twitter.com/zP9vlG31Qc
— Miles Deutscher (@milesdeutscher) October 10, 2023
In a tweet, Deutscher noted range bound trading from Q2 to Q4 of pre-halving years is historically the norm before bullish shifts around November 21st.
Bitcoin’s next halving is expected in early 2024, cutting its block reward in half. Previous halvings catalyzed monumental bull runs.
However, Crypto Capital Venture founder Dan Gambardello highlighted diminishing Bitcoin dominance as an unfavorable macro sign. At around 51%, BTC dominance is much lower than the 70% level in the same period last cycle.
Bitcoin dominance is around 51% and is losing its strength.
This time last cycle, it was around 70%
Bitcoin dominance is getting weak on the macro pic.twitter.com/LDOvzr1Fex
— Dan Gambardello (@cryptorecruitr) October 10, 2023
But historically, the current consolidation matches Bitcoin’s behavior ahead of its built-in supply shocks. This suggests the top cryptocurrency remains on track per previous cycle roadmaps.
Bitcoin halving is a recurring event that takes place approximately every four years. During this event, the reward given to miners for processing Bitcoin transactions is reduced by 50%. This reduction has the effect of slowing down the creation of new Bitcoins, ultimately influencing the overall supply of Bitcoin in circulation.
The last scheduled halving is anticipated to happen in 2140, at which point the total number of Bitcoins in circulation is expected to reach its maximum limit of 21 million. This halving mechanism is designed to contribute to Bitcoin’s scarcity and its resistance to inflation.
As the halving approaches, Bitcoin price action continues to mimic the past. This offers hope for those anticipating historic gains. Yet decreasing dominance indicates risks if mainstream demand fails to materialize.
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