Bitcoin Price Enters Key Halving Indicator Period, Re-Accumulation Period Incoming: Analyst

The closing price for Bitcoin in October represents the start of an important timeframe historically tied to market outperformance, according to pseudonymous analyst PlanB.

In a recent tweet, PlanB noted that the period spanning from 6 months before a halving to 18 months after has generally marked peak performance relative to a simple buy-and-hold strategy. Halving events, which cut BTC’s mining rewards in half, are central to PlanB’s stock-to-flow pricing model.

“And that is the essence of the S2F model: that scarcity and thus halvings drive price,” PlanB wrote. The next halving is estimated to occur in early 2024.

Rekt Capital talks about Bitcoin entering a re-accumulating range

Bitcoin analyst Rekt Capital also cited the cycle around Bitcoin’s 2016 halving and subsequent bull run as a possible template for future price action. In commenting on the chart, he suggested Bitcoin could form a “multi-month re-accumulation range at highs” in the coming weeks.

The observations come as Bitcoin trades near $20,500 after a rally in October, its best monthly close since December 2017, per PlanB. With the 2020 halving now more than two years past, analysts closely watch halving-era price dynamics.

If history repeats itself, the current timeframe could offer an extended period of outperformance while underscoring the halving’s impact on Bitcoin’s scarcity and value. However, macroeconomic conditions and Bitcoin’s growth make outcomes uncertain. The closing October price provides a reference point as analysts assess halving effects.