As April 2024 approaches, the term Bitcoin Halving is gaining extra traction. Crypto traders and enthusiasts alike are waiting in bated breath for the Halving event’s impact not just on BTC’s price, but on altcoins as well.

But what exactly is Bitcoin Halving and why is it important? In simple terms, it is an event hardcoded into Bitcoin’s blockchain protocol which reduces a miner’s rewards by half every four years.

This event adds a scarcity element into the cryptocurrency generating massive appeal and significantly affects the price of BTC. For more information on Bitcoin Halving, read our beginner’s guide here.

Historically, the last three Bitcoin Halving events which happened in 2012, 2016, and 2020 have caused both short- and long-term volatility. Read here to get a comprehensive overview of BTC’s price during the first three Halvings.

In this article, we’ll go through some insights on how to trade the 2024 Bitcoin Halving event.

Preparing for the 2024 Halving

As the 2024 Bitcoin Halving approaches, there is widespread anticipation for a bullish run. Diving into the historical data and examining how previous Halvings impacted the price of Bitcoin and other altcoins can help identify patterns.

Do you have a trading strategy in plan? Check out how they would’ve fared during the past Halving events using Traders’ Gym, our backtesting tool, exclusively available on ThinkTrader Web.

Additionally, it’s crucial to keep an eye out for crucial developments within the Bitcoin ecosystem, such as changes in mining technology or regulatory updates.

Basic Tools and Indicators to Master before the Halving

Here are the basic tools and indicators that are essential for monitoring the crypto market. Achieving mastery of these tools will help you gain a basic understanding of how the market might move leading to and after the Bitcoing Halving event.

With a ThinkTrader account, you get free access to TradingView’s powerful charting interface, equipped with advanced trading tools and features.

Price and Volume Charts

Visualise past and present price movements so you can identify patterns and trends.

Moving Averages (SMA and EMA)

Simple and Exponential Moving Averages can help smooth out price data over specific periods, i.e. before and after the halving, providing insights into the overall direction of the market.

Relative Strength Index (RSI)

This momentum indicator can help identify whether BTC and other altcoins are overbought or oversold, offering clues on whether there’s an imminent price surge or downturn.

Risk Mitigation During the Bitcoin Halving Event

The Halving event can lead to high volatility in the cryptocurrency market. If you’re planning to trade cryptocurrencies, make sure you apply these risk management strategies:

Set take profit and stop loss orders

The crypto market moves fast. Setting take profit and stop loss orders will help you to secure profits and/or avoid bigger-than-expected losses. TP and SL orders help you exit positions at a predetermined price level without you constantly having to monitor the charts.

Diversify your portfolio

While the main focus of the Halving is on Bitcoin, diversifying your portfolio is always ideal. Try to explore altcoins such as ETH, XRP, ADA, or BNB. You can read our guide on how the Bitcoin Halving event affects altcoins here.

Use leverage cautiously

ThinkMarkets offers crypto traders leverage as high as 50:1. This can amplify gains but also lead to larger losses. It’s recommended that you open smaller positions, especially in highly volatile markets.

Stay up to date

When trading cryptocurrencies, it’s crucial to keep yourself updated with market news and developments. This can help provide insights into potential price movements and allow you to adjust your strategy accordingly. For example, governments and financial institutions accepting crypto can increase its appeal, thus causing a price surge. On the other hand, stricter regulations or outright banning of cryptocurrencies can lead to downturns.

Trade the Bitcoin Halving event with ThinkMarkets to gain access to advanced trading tools, automatic risk management features, and the latest market news.

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