Bitcoin has turned bullish recently and crossed the $8.5k figure just a while ago. The largest cryptocurrency in the world has returned to the $8500 valuation after an absence of 7 weeks when it suffered one of the biggest drops in recent memory in a single day when it went from $8800 to $3,300 in a matter of one day before recovering a little back to $5000-$6000 figure. Now after a gap of more than a month, Bitcoin’s both long-term and short-term indicators have turned bullish and the cryptocurrency is flashing green again, less than two weeks before the halving itself.
While there are a number of factors that are resulting in the cryptocurrency recovering from its March 2020 losses, it is easily visible that the upcoming Bitcoin halving is the biggest of them all as the anticipation around the mega event is at an all-time high. Google search results regarding the Bitcoin halving process are at an all-time high and many investors are anticipating a substantial increase, even if not in the buildup of the event, but after it. Bitcoin halving will see the Bitcoin’s block reward being reduced from 12.5 BTC to 6.25 BTC starting from May 12, 2020. The block reward is the reward of newly created Bitcoin that is given to miners according to their dedicated computing resource.
Bitcoin halving is not a novel event as it has occurred twice before in 2012 and 2016. Both of these previous halvings had their own unique price fluctuations, both in their buildups and their aftermaths. So, if you need to understand previous Bitcoin halvings and a read a detailed analysis of their machinations, please read this extensive guide regarding the previous two halvings.
Overall, the value is a 20% uptick from last week, with key indicators, both 50-day and 200-day moving average that had become major resistances in a bullish move have been conquered by the buyers. The cryptocurrency touched a maximum of $8850 according to Coinmarketcap before easing back to around $8600 at press time. While the next psychological resistance of $9k has not been breached, it is expected that it will be scaled in the short-term as more and more investment enters the market in anticipation of the upcoming halving.
Image source: coinmarketcap.com
Bitcoin with this price increase is beating all other markets especially the stocks and may eventually overcome Gold’s 12% rally during the current pandemic as well. Currently, Bitcoin has not yet posted long-term gains overall in the past few months but looks to build on this short-term success.
The immediate short-term of the cryptocurrency is bullish and is looking likely to test the $9k and then $10k barriers in the coming days, if not hours. However, the long-term resistance of $13.5k will be the next key resistance to look forward to. This resistance, if conquered, may open doors to further rally to even the all-time highs of $20k experienced back in January 2018. However, the buildup is expected to dry up as the halving itself approaches.
Featured Image source: pixabay.com
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