Will Bitcoin Drop Before Halving and How to Prepare

The halving of Bitcoin's block reward is a significant event that can impact the cryptocurrency's price. Historically, Bitcoin has always dropped before halving.

In the past, Bitcoin has experienced a decline in price before the halving event, with the price dropping by as much as 70% in the 12 months leading up to the halving. This trend is worth paying attention to, especially for investors who are planning to buy or hold Bitcoin.

Before the halving event, it's essential to prepare for potential price fluctuations by adjusting your investment strategy.

Bitcoin price briefly dropped below $60,000 before rebounding ahead of the halving event. This volatility is not surprising, given the upcoming halving.

The halving is scheduled to take place this week, which means the rewards for bitcoin miners will be slashed in half. This event happens every four years and is written in the code of the Bitcoin blockchain.

As we approach the halving, miner balances are near an all-time low due to heavy selling from miners trying to take profits. This is a sign of increased selling pressure on the market.

Net flows through the spot bitcoin exchange-traded funds have been negative since last week, further putting pressure on bitcoin. This is a concerning trend for investors.

In prior bitcoin cycles, the halving has preceded a bull run for the cryptocurrency. However, this time around, the market is experiencing increased volatility and selling pressure.

Bitcoin's price tends to contract in all of September before halving, with an average return of -17.29% in September before Bitcoin halved.

This trend has been observed in the past, with the coin losing 11.31% in August, slightly lower than the average of the past two pre-halving years. The analyst notes that prices tend to follow a pattern, and if historical performance leads, BTC may edge even lower in the next few weeks.

If the same trend holds, the coin will likely dump to $21,400 by the end of this month, although there's a possibility it could end up falling to around $24,400 by the end of the month if the performance of Bitcoin in September in the last two halvings is factored in, with an average return of -5.66%.

This year's Bitcoin halving is unlike any previous event, with the cryptocurrency's price reaching its peak a month before the halving.

Historically, Bitcoin halving has boosted the price of the cryptocurrency.

The recent volatility is likely a result of short-term traders placing bets on the outcome of the highly anticipated halving event.

Bitcoin is currently in a consolidation phase, according to Sam Callahan, a senior analyst at Swan Bitcoin.

Short-term volatility should be expected, but if you zoom out, Bitcoin's long-term trend remains clear.

September is shaping up to be a tough month for Bitcoin bulls.

After a 20% drop in August, Bitcoin's performance in September is looking even bleaker.

The average return in September before a halving is a -17.29% drop.

Historical data suggests that prices tend to contract in all of September before a halving.

If this trend continues, Bitcoin could dump to $21,400 by the end of the month.

However, if the performance of Bitcoin in September in the last two halvings is factored in, the average return was a more modest -5.66%.

This implies that Bitcoin could end up falling to around $24,400 by the end of the month.

Bitcoin's recent price action has been quite volatile, with prices hitting new lows at around $25,200 in August.

Despite the sharp dump, there's a slight recovery in the second half of August and the first week of September, which might anchor bulls' hopes.

Trading volumes are relatively low, which could be a concern for a refreshing recovery.

The SEC approving a spot Bitcoin Exchange-Traded Fund (ETF) could potentially drive demand for BTC and channel capital into the market.

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