Many people have a misconception about Bitcoin halving, thinking that the circulation will be cut in half every 4 years. In fact, that's not the case. Halving refers to the reduction of the block reward by half, and at the same time, mining difficulty will also increase. However, the total supply of Bitcoin remains at 21 million coins, a number that will never change.

Because the difficulty is increasing, the costs for miners are also rising. When mining costs go up, miners need the Bitcoin price to stay above a certain level to cover these costs—this is what is called the "shutdown price." In other words, the price of Bitcoin often finds support above the shutdown price.

If the price drops below the shutdown price, miners have no incentive to continue mining, which often indicates that the market has reached its bottom. This mechanism is actually naturally formed by Bitcoin's economic model and is worth pondering.