Bitcoin's Next Halving Rally: Coming Soon in 2019

Bitcoin underwent what is referred to as the "Halving," where the yearly bitcoin inflation was algorithmically reduced by 50 percent.

With the next bitcoin halving expected to happen in May 2020, the time has come for investors to start paying attention to this pattern.

Historically, the halving starts getting priced in approximately one year before it happens, which would result in bitcoin bottoming out in early 2019 followed by a rally starting in May 2019.

The narrative in late 2017 was that the launch of regulated bitcoin futures would open the gates to institutional investors and elevate bitcoin to unprecedented highs.

As we know now, the launch of the CME bitcoin futures on December 17, marked the exact top of the 2017 bitcoin bubble.

As data of the last two bitcoin halving clearly shows, the same "Buy the rumor, sell the news" pattern can also be observed in the 12 months prior to the halving.

In November 2011, one year prior to the first halving, bitcoin initiated a rally that ended the day of the halving after a 300 percent price increase.

In July 2015, one year prior to the second halving, bitcoin also started a rally that ended the day of the halving after a 178 percent price increase.

After the halving in May 2020, miners will now only earn 900 bitcoins per day, reducing the daily bitcoin supply on the market drastically.

After the 2012 bitcoin halving, it took the market two months to start feeling the effect of the inflation halving and for bitcoin to initiate a parabolic move that propelled its price from $12 to $142. Interestingly, after the 2016 halving the market felt the inflation reduction even sooner, this time bitcoin started a rally that would bring it from $582 to $20,000 just one month after the halving.