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2019-10-18 00:38:20
Jacob Fisher

Editor

2019-10-18 00:38:20

Can Bitcoin Consolidate Until May Halving?

Every 210 thousand new blocks in the Bitcoin network, a significant event occurs - halving. It means that the reward to the miner for each block mined is halved.

Every 210 thousand new blocks in the Bitcoin network, a significant event occurs - halving. It means that the reward to the miner for each block mined is halved.

Every 210 thousand new blocks in the Bitcoin network, a significant event occurs - halving. It means that the reward to the miner for each block mined is halved.

Halving happens approximately every four years, so at the moment there are only two of them in the short history of bitcoin. The first occurred in November 2012, when miners mined the first 210 thousand blocks and the amount of remuneration decreased from 50 BTC to 25 BTC.

The second halving took place in June 2016, upon reaching the 420,000 block. Then the reward was halved again, from 25 to 12.5 BTC.

The third halving is coming in May 2020, or perhaps a little earlier.

Cryptocurrency analyst @davthewave used the logarithmic growth curve to try to determine the future dynamics of the Bitcoin exchange rate with its help.

As a result, he came to a curious conclusion. The graphs show that cryptocurrency can expect a long period of consolidation and a slight weakening up to May 2020 - that is, the date of the proposed halving.

 

The trader does not claim to have revealed a complete analogy to the patterns, but suggests that the market may be in the lateral range for a long time.

 

Logarithmic Resistance

We built our curve, and our resistance line is slightly different from what @davthewave cites in his comment. It connects the highs noted during the 2018 correction.

 

In May 2019, the price made a bullish breakthrough of this resistance line, after which its growth rate markedly accelerated. Since then, Bitcoin has no longer attempted to decline in order to test its strength.

It can be seen on our graph that the resistance line, marked with a dashed line, tends to intersect with the support line, which has remained unchanged since 2013 and is indicated in green on the graph.

However, in order to achieve it, the price does not have to go down.

Bitcoin will still touch this line if it simply consolidates before the middle of next year.

Intraday price dynamics provides us with an approximate scenario of how this might look:

It is worth noting that this is quite similar to the price movement in 2017, when bitcoin first grew, and then went into a long phase of consolidation.

 

This phase may be followed by a smooth decline, as a result of which the price will again reach the area of ​​$ 7,000 in May or June 2020.

 

Do you think that while waiting for halving, Bitcoin will consolidate? If not, then where will the course go - up or down? Share your comments with us.

 

Disclaimer: This article is not a trading recommendation and should not be construed as such. Always consult with qualified finance professionals before investing in cryptocurrencies, as this market is characterized by increased volatility.

 

Charts and images provided by Twitter, TradingView.