Bitcoin hits a 10-week long resistance as it crosses above $10k for a moment before yesterday’s closing and is back to trading around $9.8k while a low touched at $9.7k, since the onset of the day until the time of writing.
With 3rd Bitcoin halving round the corner, investors have stuck their eyes to take a reminiscent view of steep upward price correction that happened prior to the other two halving in 2012 and 2016. Having said that, it is important to note that the price of BTC rose 6900% in 2012 in a four-year span until the next halving in 2016, and approximately rose by 1,250% from 2016 until the press time after the second halving.
Now, even if we take an average of the growth rates over the past 8 years which happens to be somewhere around 4000% when compounded with two halving and is somewhere around 1000% if we compound with 8 years, will the price of the king of cryptocurrencies grow as much as $400,000 or $1,00,000 considering both the situations respectively, over the next 4 years? This remains quite hazy because the market is nothing less than an unprecedented volatile space.
Anticipations Regarding BTC Price Rise and Trend Revision After Halving this time:
Moreover, two factors that support the speculations of an unprecedented spike after the halving 2020, a part of which was ought to happen prior to the halving is that the block rewards of the miners will be halved i.e. a decrease in the amount of Bitcoin rewarded to the miners for mining and thereby doubling the cost of mining after the halving year 2020.
Additionally, there has been no steep selling over the past 7 days as the price oscillates within a range by the miners as there is an anticipation of a price rise in the near-term which can steep and massive liquidity later. However, this may appear quite positive to miners but for the institutional investors it is not. One such example of this is the March market crash when the price of Bitcoin lowered around the yearly low and due to the lack of buying demand a significant drop happened.
Second of the stated factors is the outbreak of Coronavirus which took place in late 2019 and has left a staggering effect on the world economy. This has brought the traditional assets to their knees and further has led the standard US Dollar to lose its charm as the United States deemed to fail as a superpower. With $3.9 trillion of bills printed by the Federal Reserve to combat the losses, the inflation rate to return these debts will be erupting.
With this variable in mind, Paul Tudor Jones says that he is buying Bitcoin as a hedge against the upcoming inflation—Let us simplify- Inflation or Hyperinflation?
We are in an economic crisis and Bitcoin is drastically outperforming every asset.
It is literally serving as the strongest safe haven.
The people are waking up to the game.
They are choosing to protect themselves.
Even Paul Tudor Jones is a Bitcoiner now.
— Pomp 🌪 (@APompliano) May 8, 2020
He says that this reminds him of the role that gold played in 1970 amidst a Great Monetary Inflation which is far ahead and deeper from anything that the veterans would have ever witnessed until now. With a supreme question of having a hedging tool against the upcoming volatility and inflation, Jones said he considered various bets on gold, Treasuries, certain types of stocks, currencies, and commodities before recognizing a “growing role for Bitcoin.” And, this time he said he evaluated BTC as a store of value and decided it passes the test based on four characteristics: purchasing power, trustworthiness, liquidity, and portability.
However, little did we know that we might be moving closer to the 2017 bubble as the intraday price of Bitcoin draws a Head and Shoulder to confirm a bullish breakout. Visit our exclusive post on CryptoNewsZ’s Bitcoin price forecast to get more ideas about future prices of Bitcoin.
With the completion of the Head and Shoulder pattern on the intraday chart, the price of Bitcoin is back to trading around $9.8 price area. Planning the trade beforehand, along with the entry points, stops, and profit targets as well as noting any variables that will change the stop or profit target, remains the ultimate key after the pattern. Moreover, on the intraday, Bitcoin is retaining a slight yet steady support due to volatility.
On the other hand, if we take a look at the 8 days price movement of Bitcoin against the US Dollar, it marked a notable uptrend from May 04, 2020 after a brief price accumulation for the prior 3 days. However, a steep leap that happened before the closing hour yesterday is justified by the H&S on the intraday chart. With the technical supporting the current price surge, we believe that an even steep blow-up is yet to happen. Well, if an hour was enough to hit a 10-week resistance, 3 days will be more than enough for a $1 million.