The pressure on Bitcoin seems to be on the rise again. A couple of months ago, they said, “You will never have another opportunity to buy four-digit BTC,” but today it looks like a return to $ 6000. All hopes are now on halving, but can that really prevent another bear market?
Not the best time for Bitcoin
In the short term, BTC looks bearish. Failure to overcome resistance above $ 8 again led to another drop as BTC dropped to $ 400 a few hours ago. According to Tradingview.com, it recovered slightly, trading at $ 8, just below previous support levels.
The patterns that appear on the hourly and daily charts are all bearish in the short term. The death cross is imminent on the daily chart with a 50-day moving average poised to fall below the 200-day. The last time this happened was in March 2018, which resulted in a one-year bear market.
The four-month descending triangle has disintegrated into a bearish flag that sings the same tune. A return to $ 6000 now looks more likely than a five-digit rally.
Halving help?
The next major bullish event for Bitcoin is the May 2020 halving. Historically, there have been significant rallies leading up to these events. This has certainly been the case for little brother Litecoin this year, which is up 380% in six months.
CryptoWelson trader and analyst pondered the semantics of bisecting and how this would affect the rewards of miners.
“1800 bitcoins are mined a day. This equals $ 15 million. USA, which are sold daily in the market. In May 2020, the block reward will be halved to 6,25 BTC, which will lead to a decrease of $ 7,5 million. USA ".
1,800 # Bitcoin are mined per day. This equals a value of $ 15M sold to the market daily.
In May 2020, the block reward cuts in half to 6.25 $ BTC which results in $ 7.5M less needed to absorb miners' BTC.
Bitcoin will not stay this cheap for long. Accumulate before it's too late!
- CryptoWelson 📊 (@CryptoWelson) October 15, 2019
As we get closer to mining the 18 millionth Bitcoin in circulation, it is clear that supply will slow down and new coins will be mined less frequently, especially after the block is halved. In addition, 85,7% of all bitcoins have already been produced.
This will cheer up the current market, which costs about 148 billion dollars, to be shared among all those who want to own BTC. In addition to retail investors, this group includes exchanges, custodians, institutions and even some banks.
Supply and demand dictate the price, and it is likely to increase in the next year and beyond. Nothing can compete with BTC now, and institutions are clearly interested in the digital asset, which has strengthened its position among traditional ones this year.
Bitcoin may storm ahead, but it has already survived these storms again and again throughout its short ten-year life and will continue to do so in the future.
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