With a year left to the hotly anticipated Bitcoin [BTC] halving scheduled for May 2020, the bulls are right on track. Based on historical price movements, the price of the top cryptocurrency surges 3 months to a year prior to the halving; the current market conditions are a testament to this effect.
Bitcoin mining rewards are set to drop by 50 percent from 12.5 BTC per block at press time to 6.25 BTC per block on the aforementioned date, hence resulting in a scarcity of the coin, leading to a price rise. Previous halvings, the first in 2012 and the second in 2016 have seen a prior price push, with the third halving expected to usher in the same.
According to a BTC price chart, laid out from the mining reward reduction perspective via Reddit by user lemonmule, the current market is in a “Reaccumulation,” phase, which will continue to flow till May 2020. The period following the halving will give rise to the “Bull market,” where Bitcoin will surge from around $15,000 to well over $140,000.
Despite the forward-looking prediction being quite streamlined in the bullish sense, the previous predictions do paint a telling tale of a uniform change in the BTC price leading up the periodic event. The four-part cycle consists of a bear market following the bull market, then resulting in an “Accumulation” period, then a short stint of “Expansion,” after which a “Reaccumulation” period, as can be seen in the current market.
The past two halvings have seen this cycle replicate. In November 2012, when the 210,001 block was produced the rewards dipped from 50 BTC per block to 25 BTC. Almost a year and a half prior to the same, the price of Bitcoin topped at around $30,