Performance of Bitcoin 17 days prior to Halving
Hash Ribbon Buy signal is occuring.
However, this may be the most high risk signal to date.
Why?
- All halvings have had another capitulation
- Miners are running at break even today
- Global recession = tighter liquidity = credit crunch
In 2020 there is a greater probability of more miners defaulting.
All prior halvings had another capitulation within 3 mths after the halving.
Today we are 17 days from the 2020 Halving.
If you bought 17 days before other halvings, price was very volatile, and your returns up to the next signal were mixed:
- 2012: 90% higher
- 2016: 1% higher
In short - if considering Bitcoin accumulation for long-term positions which will be held for at least 1 year, "dollar cost averaging" (buying in increments over the next 30 days) should be a good strategy, but expect volatility.
However, this may be the most high risk signal to date.
Why?
- All halvings have had another capitulation
- Miners are running at break even today
- Global recession = tighter liquidity = credit crunch
In 2020 there is a greater probability of more miners defaulting.
All prior halvings had another capitulation within 3 mths after the halving.
Today we are 17 days from the 2020 Halving.
If you bought 17 days before other halvings, price was very volatile, and your returns up to the next signal were mixed:
- 2012: 90% higher
- 2016: 1% higher
In short - if considering Bitcoin accumulation for long-term positions which will be held for at least 1 year, "dollar cost averaging" (buying in increments over the next 30 days) should be a good strategy, but expect volatility.
