Bitcoin: Why 11th April 2022, is an Important Date?

Paigambar Mohan Raj
Source: TIME

Halving is one of the most significant economic events in Bitcoin’s life cycle, which occurs every 4 years on average. Bitcoin halvings cut the issuance of Bitcoin (BTC) in half, resulting in possible increased demand for the digital asset. Now, according to Santiment, after a bitcoin halving, the price has always acted in a peculiar fashion in the 4-year window.

The first is at the beginning when the halving takes place in the network. When the supply of BTC is divided by two, the price usually starts to rise.

Source: Santiment

The second, according to Santiment, is the climax. It occurs when the price achieves an all-time high (ATH), and it took 518 days for the price to reach its ATH in the two most recent cycles.

Source: Santiment

The third is the mid-halving correction. Based on the previous cycle, in the same timeline, Bitcoin’s (BTC) price was battling with significant resistance and was unable to break through, resulting in the continuation of a long-term bear market. 

Source: Santiment

As of now, the $50K mark is a significant stumbling block along the path. The 11/Apr/22 is the ongoing cycle’s Mid-Halving correction, and if the price can stabilize above this level, as per Santiment, we may lend greater credence to the notion that “this cycle is different than the others.” To compare the two recent Mid-Halving corrections, Santiment looked at some on-chain measures. 

There were roughly 600K daily active addresses in July 2018, and now there are almost 900K. Although network activity was reduced, it was still far more than it had been during the previous mid-halving. In comparison to 2018, this could indicate increased network usage.

The whales were undecided in July 2018, and after a short length of time, those with a balance of 100-1,000 Bitcoin (BTC) began to sell their bitcoins, while those with greater wealth (1,000-10,000 BTC) began to acquire. When we were only a week away from the Mid-Halving downturn, this tier of investors began buying and expanding their bitcoin holdings.

According to Santiment, history will not repeat itself exactly as it has in the past. Because investors are acting differently in this cycle, the outcome could be different, and the current bear market will not be like the last one. This doesn’t necessarily imply that we’re headed to the moon, but it does imply that the BTC price trend will develop as investors become more mature.