Is this the perfect time to buy bitcoin? Here's what history says

bitcoin is looking encouragingly firm at press time, finding its footing above $58,000 and just inches away from the critical psychological level of $60,000.

After a volatile week, stability is a big boost for the bulls. While there are strong points, sellers are still in control. For the uptrend to take shape and buyers to gain momentum, bulls need to reverse the gains of July 4 and 5.

Is this the right time to buy bitcoin?

Amid this bullish optimism, an analyst at x x.com/QuintenFrancois/status/1810580092482957351″ target=”_blank” rel=”noopener nofollow”>saying btc price is at the perfect point if we go by the price evolution after the Halving over the years. In the post, the analyst said that bitcoin usually marks higher highs, resuming the uptrend 80 days after the Halving.

On April 20, the world's most valuable network halved its rewards for miners, from 6.25 to 3.125 btc. However, while traders expected prices to expand immediately, that was not the case.

In any case, the correction from the March 2024 highs continued, with prices closing around $56,500 in May. The downtrend continued in June, with even stronger bears in the first half of July, when btc fell to $53,500.

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Exactly 80 days have passed between the halving date at the end of April and July 9. Bulls tend to accumulate during this time in preparation for a parabolic bull run.

The reaccumulation phase the analyst points out is also strategic, especially for smart btc investors. After the Halving and amid reduced rewards, weak miners tend to capitulate. As they exit, selling their reserve, prices fall in unison.

Is the bitcoin miners' capitulation over?

Data x.com/indiansunrise00/status/1810711658232262838″ target=”_blank” rel=”noopener nofollow”>reveals that weak miners tend to shut down between six and ten weeks after the Halving event. Their capitulation, as explained, coincides with strong price increases.

Late last week marked the end of the tenth week of miner capitulation, the longest since the 2012 Halving event. If price action rhymes with historical returns, then the dumping phase is likely over and bitcoin is in the early stages of a parabolic rise.

Santiment data x.com/DegenFully/status/1810580401066246425″ target=”_blank” rel=”noopener nofollow”>sample That bearish sentiment among bitcoin traders on major social media platforms like x and Telegram is the highest it’s been in over a year. Aggressive traders may take a contrarian position, loading up on every dip at these extreme levels of fear, uncertainty, and doubt (FUD).

Featured image from Canva, chart from TradingView