Bitcoin Price Analysis: Is BTC halving already priced in? Is lift-off to $20,000 still possible?
|- Bitcoin halving is one of the most significant events in 2020 but it raises numerous uncertainties in regards to price action.
- Diverging opinions among experts splitting the community into two; the bulls camp and the bearish camp.
- Bitcoin price recovery is likely to climb above the resistance at $8,000 pre-halving.
Bitcoin block reward halving will take place in exactly 13 days from today. Miners within the Bitcoin network are rewarded with some Bitcoins for the blocks they produced. However, every four years (roughly 210,000 blocks), this reward is reduced by half. At the moment, miners are receiving 12.5 BTC but after halving, they will receive 6.25 BTC per block mined. Halving happens to control inflation within the Bitcoin network.
Price action after halving
Halving leads to reduced supply of Bitcoins coming into the market. However, demand is expected to remain the same or even increase. Past halving events resulted in Bitcoin pumping to new all-time highs. Many in the industry expect the same price action to follow the halving in May with some predictions going as high as $250,000 by 2022 and $1,000,000 per BTC in five years.
However, some experts say that Bitcoin price is right where it should be and that halving will not result in the expected rally. According to Francis Pouliot, the CEO of Bull Bitcoin in Canada, “the supply shock of the halving is negligible compared to the regular trading volumes of exchanges.” Pouliot adds that over time, investors will lose confidence in other assets which make him “insanely bullish” on Bitcoin. Another expert, Zoran Scekic, the managing partners at Zorax Capital says that “there’s usually an unexpected pullback after the halving.” It means that instead of Bitcoin rallying following halving, a drop in price could come into the picture.
In line with the above bearish sentiments, Joe007, a popular Bitcoin whale believes that halving is already eclipsed in Bitcoin price. Recently while talking to Cointelegraph, Joe077 said in a sarcastic way:
No, of course it's not priced in. On the very day of The Great Halvening, everybody will finally realize how underpriced BTC is, and they will all rush to buy it. In droves. With their unemployment checks.
Bitcoin price is holding the ground at $7,677 after recovery hit a wall at $7,900. Increased selling pressure made it difficult to contain the accrued gains above $7,700. Bitcoin bulls are currently seeking support above $7,600. With halving in the picture, volatility could rise and price speculation is likely to send Bitcoin above $8,000. However, the price action after halving remains uncertain and the rally above $20,000 questionable.
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