Trusted

Buy Bitcoin Six Months Before the Halving and Sell 24 Months After, Says Renowned Analyst

3 mins
Updated by Michael Washburn
Join our Trading Community on Telegram

In Brief

  • Plan B introduced a potentially lucrative Bitcoin trading strategy that centers on the four-yearly halving cycle.
  • This trading strategy aims to outperform and capitalize on Bitcoin's scarcity-induced price surges and avoid bear markets.
  • The upcoming Bitcoin halving in April 2024 could be another profitable opportunity despite potential black swan events.
  • promo

Renowned Bitcoin analyst Plan B has recently revealed an innovative trading strategy. He claims it could yield profits significantly surpassing those achieved by simply buying and holding Bitcoin.

Plan B’s new trading strategy revolves around the Bitcoin halving, garnering attention for its significant returns.

A Trading Strategy Around the Bitcoin Halving

The Bitcoin halving is an event that occurs approximately every four years. It has historically sparked significant price increases due to a 50% reduction in the rate new BTC can be mined.

These events create a surge in scarcity, which according to Plan B, these periods offer an optimal opportunity for savvy investors.

Plan B’s model, dubbed the “Stock-to-Flow Trading Rule,” involves buying BTC six months before the Bitcoin halving and selling 18 months after the event. This trading strategy aims to exploit Bitcoin’s cyclical behavior. Consequently, capturing the dramatic price increases often seen around the halving while avoiding the ensuing bear markets.

Bitcoin Stock-to-Flow Trading Rule.
Bitcoin Stock-to-Flow Trading Rule. Source: PlanBTC.com

The on-chain analyst drew comparisons between Bitcoin’s price trajectory and the results achieved by his strategy. In every case, the model outperformed Bitcoin’s price trend.

“Bitcoin is at $30,000, so the strategy [anticipates a] 4X in the Bitcoin price. We are awaiting the next Buy Signal and we know already that the halving will be around April 2024, so six months before that is around October…. Then [Bitcoin will] enter the market and will stay there for two more years until October 2025, 24 months later,” said Plan B.

Still, Plan B emphasized that the Stock-to-Flow Trading Rule is not a prediction model. Instead, it is a strategy that utilizes defined buy and sell rules to dictate market participation periods.

Bitcoin Market Cycle Plays a Pivotal Role

The implementation of this strategy requires a thorough understanding of the “Bitcoin Market Cycle.” According to Plan B, the model identifies the current stage as the “early bull market.”

The subsequent stage, where the significant price jumps occur, is anticipated to start around the next Bitcoin halving event, slated for April 2024.

Bitcoin Market Cycle
Bitcoin Market Cycle. Source: PlanBTC.com

As Bitcoin enters the final stretch before the next halving, traders are eagerly watching for signals indicating the late bull market phase. In previous cycles, the transition to the green stage began shortly after the Bitcoin halving, catalyzing an accelerated bull market.

Despite these encouraging historical trends, the upcoming Bitcoin halving’s outcome remains uncertain. Factors such as black swan events could delay or disrupt the expected price rally.

🎄Best crypto platforms in Europe | December 2024
eToro eToro Explore
Coinrule Coinrule Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
3Commas 3Commas Explore
🎄Best crypto platforms in Europe | December 2024
eToro eToro Explore
Coinrule Coinrule Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
3Commas 3Commas Explore
🎄Best crypto platforms in Europe | December 2024

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Frame-2466.jpg
Bary Rahma
Bary Rahma is a senior journalist at BeInCrypto, where she covers a broad spectrum of topics including crypto exchange-traded funds (ETFs), artificial intelligence (AI), tokenization of real-world assets (RWA), and the altcoin market. Prior to this, she was a content writer for Binance, producing in-depth research reports on cryptocurrency trends, market analysis, decentralized finance (DeFi), digital asset regulations, blockchain, initial coin offerings (ICOs), and tokenomics. Bary also...
READ FULL BIO
Sponsored
Sponsored