In times like these, tension and uncertainty take over many in this world of crypto, but it is not the first time that price drops like the one perceived in May 2022 have occurred.
Seeing so many portals to clearly understand how this has been a cycle, it makes sense that this kind of pause occurs due to a restructuring in the digital world, especially in the main currency, Bitcoin. Slowly reading these analyses, I can tell you what we have understood of these facets.
Markets have cycles in the traditional economies that are marked by a large number of factors. In the case of Bitcoin, its cycles are easily predictable since they are already written in code and that code itself has a name, called Halving. Because every 4 years a Halving occurs in the BTC network, this marks the beginning of a bullish cycle approximately one year later.
Halving, to summarize this concept is an automated process of halving the bitcoins that miners receive as a reward for creating a block. It was created to encourage mining through proof of work. This by establishing with every certain number of blocks, the emission must be reduced by half.
The image is taken from Criptostar
This emission generates that there are new cryptocurrencies in circulation and we can easily buy bitcoins. A predictable process of initial democratization for the distribution of the currency allows preventing all of them from ending up in a few hands.
So Bitcoin's cycle is traced as follows: First, a bullish cycle is marked that comes after the halving produced, to reach another Bearish cycle to end in a Lateral cycle, which would be like the Moon going from the last quarter to a Moon New and Crescent Moon.
Those short but efficient studies that we have looked at these days that have taken many by surprise, including us, are part of a halving theory that must be repeated from time to time. Now, will it come in that "Crescent Moon" as has been said, will the records of new records in the currency come? We would like it, for now, we want to see how it continues.