Bitcoin market analyst Philip Swift has predicted that Bitcoin price index will once again top $13k in early 2020 because of the next Bitcoin halving. Bitcoin halving for those who don’t know occurs every four years and as a result of it, the pace of creation of new Bitcoins is reduced by half. Currently, around 12.5 BTC are being created every 20 minutes or so and distributed among the miners. But in May 2020 this amount will be reduced to half i.e. just 6.25 BTC and that is expected to increase the worth of the existing cryptocurrency.
Analyst Philip Swift like other crypto commentators is banking on the Bitcoin halving to catapult the sector to new heights starting with a recovery to $13k barrier that the bulls have been unable to overcome throughout the current year of 2019. Using monthly and weekly trading charts Swift tried to prove that the next bull market is just around the corner despite the recent price tank below $8K that has brought more gloom in the market at the year’s close.
His first proof uses a 350-day moving average chart and it is interesting to see that despite the price tank, the current price index is holding above the key stat. The reason it is doing so is because the year’s start was bearish and the price index was around $3000-$4000 for much of the start of the calendar year but as the year progressed, various bull runs and subsequent pullbacks were experienced which showed that the cryptocurrency sector has plenty of potential to go upwards provided the right market sentiment is achieved.
Wright continues:
“Combining all that with Golden Ratio Multiplier to look forward, likely we will have a big move up in Jan/Feb taking price up to the region of the 350 x 1.6 (green line), which will be approx $12-13k by then”
While many crypto analysts are banking on the holy grail of bitcoin halving for future bull runs for the market, it is clear that the halving has historically shown positive aspects in the long-term future and not in the immediate aftermath of the halving itself. However, due to the positive anticipation of the halving we might get a smaller bull run in its buildup and aftermath.
Image source: pixabay.com
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