Bitcoin: >500 days after halving, will BTC go back in time?

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The analyst believed that the bottom of Bitcoins could be near since the Halving history showed a similar event. BTC could still be considered overvalued in the current cycle.

aBitcoin’s Desire [BTC]a significant resurgence might be considered null and void as there are only a few days left before the end of 2022. For long-term hopefuls, that might not be much of a concern.

This has been the case ever since a tweet from well-known crypto trader Rekt Capital suggested that a historic comeback has emerged. According to the analyst, Bitcoin’s halving is around 500 days, and in most cases, this period signifies the bottom for the king’s coin.

Historically, #BTC tends to drop 517-547 days before the next Halving event

The next halving is in about 500 days$BTC #Crypto #Bitcoin

— Rekt Capital (@rektcapital) December 22, 2022

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A historic repeat or a path to recession?

The Bitcoin Halving is a four-year event where the reward for Bitcoin miners is halved. The next one would produce a reward of 3.125 BTC. Historically, this event has impacted the price of BTC, instigating volatility and signaling bottoms.

While the next halving would take place around May 2024, the last of 2018 was a catalyst for the all-time high of $11,000 recorded in 2019. But with current circumstances, does BTC have the potential to repeat the halving? ‘story ?

Some comments from the analyst’s tweet showed doubts from investors, with one pointing out that BTC had never been in a recession like it was now. Meanwhile, positives were happening on the bitcoin chain. The chain’s chief analyst, Checkmatey, believed that the long-term supply of holders was a part that showed confidence.

Good #BITcoin chart. pic.twitter.com/Rj8B7Xzvjn

— _Checkmate (@_Checkmatey_) December 22, 2022

As these holders kept more and more possession of their BTC, this indicated a possible push towards long-term bull market strength. However, this will only be the case if the coins are not spent. In the meantime, some terrifying charts also threatened to cut replication in half.

According to data from Glassnode, the entity-adjusted dormant flow rose to 184,991. This metric acts as a ratio of Bitcoin market capitalization regarding the assessment of market lows and bull market projections.

As the trend was up, this signified an overall conviction from long-term holders as some were participating in the spending of their coins.

Source: Glassnode

Here is the bitcoin price prediction 2023-24

Long and short, what are the odds?

At press time, Bitcoin had slipped slightly, trading hands at $16,368, according to CoinMarketCap. Meanwhile, the difference between market value and realized value (MVRV) showed an exit from the lows recorded the previous week.

However, it was still negative at -28.97%. This meant that short-term holders would likely profit than investors who had held longer at the current price if they sold.

On the other hand, the network value per transaction (NVT) with volume was extremely high. Based on data from Santiment, the NVT was 204. This implied that BTC could still be overvalued at such a high value since the network valuation seemed higher than the trading volume.

Source: Santiment

So, with all this data and thoughts, the potential Bitcoin halving effect had no confirmation. Whether or not the play was on the bottom remains an inclusive discussion.

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