With the 2024 block reward halving not too far away, Bitcoin is entering “buy the dip” territory.
That’s the conclusion of several prominent market participants this month, with Bitcoin just a year away from its next “very exciting” halving.
hBitcoin Alvi: Is It Time To Buy?
Bitcoin halving cycles generally follow a pattern when it comes to price activity over a given time period.
This 4-year “period” thus far includes macro tops and bottoms in BTC price, and they are also 4 years apart.
Additionally, in each cycle, macro bottoms tend to occur more than 1 year before the next halving. For longtime bitcoin advocates like crypto media guru Pete Rizzo, there’s little reason to believe the future will be much different.
“As a reminder, the world’s most valuable currency must be designed to be more scarce. Please plan accordingly”, he Write In part of a tweet from May 12.
Rizzo celebrated the 3rd anniversary of the 2020 halving with an accompanying chart highlighting BTC price action in relation to the number of months remaining until the halving event.
BTC monthly chart and Halving time marked | Source: Petrizzo
Investor and entrepreneur Alistair Milne went a step further, advising that for those looking to profit from BTC, now is the time to buy, with the months leading up to the halving a less profitable entry point.
“Don’t go short when it’s dark green, and get all in before it turns blue…”, he summarize About the content of the chart.
Plan B: Halving in 2024”not yet Pay attention to”
Meanwhile, earlier this month, another popular but controversial figure in the bitcoin industry used a similar halving narrative to assert that the price cycle was no accident.
PlanB, creator of the Bitcoin Stock-to-Flow (S2F) price prediction model, stated in his own post that half of market participants believe the relationship between the halving and price is random.
His comments come against the backdrop of the halving being associated with S2F, a theory that continues to attract criticism for failing to meet price targets from 2021 onwards.
However, for PlanB, BTC is still low and the upcoming halving event is not recognized by the market.
“Why hasn’t Bitcoin S2F/halving been priced in yet? Because about 50% think BTC’s price spike after the last 3 halvings (red) is a coincidence. Halving is key to S2F, but these critics focus on halving and concluded that there is no connection between S2F/halving and price. Obviously, I disagree. Halving in 2024 will be interesting!”, he Write along with explanatory diagrams.
Bitcoin Stock to Flowchart | Source: PlanB
In an ensuing discussion, PlanB called the idea that Bitcoin is bullish because the halving reduces the available supply, or “outflow,” “indisputable.”
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As reported by Cointelegraph