• Bitcoin price may drop significantly after the halving, Charlie Lee warns.
  • BTC/USD is poised for further recovery as long as it stays above $9,000.

Bitcoin (BTC) has been rising sharply since the beginning of the week. The first digital coin managed to clear the psychological barrier of $9,000 and hit the intraday high of $9,148. At the time of writing, BTC/USD is changing hands at $9,095, moving within a strong upside trend. Bitcoin's average daily trading volume is registered at $30 billion.

Litecoin's creator believes that Bitcoin may follow Litecoin's halving scenario

Bitcoin price around halving time may show the same momentum as Litecoin during a similar event in August 2019, according to Charlie Lee, the creator of the seventh-largest digital asset. Speaking in a recent interview with a New Zealand-based crypto influencer Lark Davis (aka The Crypto Lark), he noted that Litecoin price had been growing ahead of the halving and reached $144.00 by the time of halving. But once the event was over, the price corrected towards critical $100 and then collapsed to 438. At the time of writing, LTC/USD is changing hands at  $59.5, which is nearly 2.5 times lower from the peak.

People were buying Litecoin as they expected the price increase after the mining rewards reduction. Basically, we followed a classic pattern of "buy the rumor, sell the fact", Lee added. He expects that Bitcoin may follow the same path; however, he also does not exclude other scenarios as we never know for sure how things will pan out. 

Meanwhile, cryptocurrency experts have different views on what may happen to Bitcoin around halving time. Thus, Fundtrat's founder Tom Lee and Charles Hwang from Lighting Capital, expect a strong rally following the event, while others, like Jason Williams from Morgan Creek Digital, believe that the halving will be a non-event as it is priced in.

Read also:

Bitcoin halving is around the corner: How to trade it 

BTC/USD: technical picture

A sustainable move above SMA200 daily at $8,900 has improved the technical picture significantly. Now that the price settled above $9,000, the next bullish target of $9,184 (the highest level of 2020) comes into focus. Once it is cleared, upside momentum is likely to gain traction and push the price towards $9,800. This barrier, created by the upper line of the weekly Bollinger Band, separates us from pivotal $10,000.

On the downside, a retreat back below $9,000 will push the price mack inside the recent range with the initial support at $8,600, reinforced by the middle line of the daily Bollinger Band. It is closely followed by $8,450 (50% Fibo retracement). The critical support comes at $8,000 with SMA100 daily and SMA50 weekly located around that area.

BTC/USD daily chart





Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Price Analysis: BTC/USD may retest $10,000 in May

BTC/USD hit the intraday high at $7,374 and retreated to $7,270 by press time. The first digital coin has been consolidating gains in a tight range after it had broken above $7,000.

More Bitcoin News

Bitcoin Cash Market Update: BCH/USD retreats from $280 post halving

Barely a day after Bitcoin Cash reward halving took place, buyers are already experiencing increased pressure from the sellers. The brief rally at the beginning of the week stalled at $280, leaving $300 untested.

More Bitcoin Cash News

TRX/USD faces a strong resistance at $0.01400

TRX is the 16th largest digital asset with the current market value of $907 million. The coin has settled at $0.0136 and stayed mostly unchanged since the beginning of Thursday and on a day-to-day basis. 

More Tron News

Ethereum Price Analysis: ETH/USD short-term fate hinges of daily SMA200

ETH/USD recovered from the intraday low of $168.42 and settled at $173.40. The coin has gained 1.1% in the recent 24 hours as the upside momentum has resumed after a short-term consolidation period. 

More Ethereum News


Bitcoin Weekly Forecast: BTC breaks its ties with stocks, strives to return its safe-haven status

Most part of the week Bitcoin has been on the recovery path. Slowly but surely the coin left $6,500 behind and even tested waters above $7,000.

Read the weekly forecast