Bitcoin price pre-halving rally a pipe dream?

Bitcoin is just several weeks from the mining reward halving event. However, the price action is drab and investors seem to unbothered by the usually highly anticipated even. At the time of writing, BTC/USD is trading at $6,705 after suffering a 2.92% loss on the day. The largest cryptocurrency has also retreated from last week’s highs above $7,500. According to the price analysis published earlier on Monday, the path of least resistance is downwards while bears target $6,000 in the near term.

Anton Lucian, Beincrypto analyst, reckons that Bitcoin’s Relative Strength Index “is at historically low levels – meaning it is exceptionally oversold before its next halving in May.” It is apparent that the ongoing Coronavirus pandemic has shift attention from both digital and financial markets to cushioning the world against a recession. Amidst all the financial mayhem, BTC’s RSI continues to fall. The same sentiments were also shared by PlanB (@100 trillionUSD), a trader and Bitcoin evangelist; while the chart below shows Bitcoin close to its local bottom, the prevailing macroeconomic factors introduce uncertainty as to whether there will a pre-halving rally.

Another Bitcoin proponent, Peter Brandt is also coming up bearish ahead of the May halving. In a tweet, which has been deleted, Brandt said that Bitcoin has a reason to rally now and if it fails to explode, then a rally is a pipe dream. He also posted a bearish chart that shows Bitcoin price has broken key support and gearing up for a bearish ‘head and shoulders pattern.”

“There is an old adage in trading.

Markets that won’t rally when they have all the reasons to rally are markets that can’t rally.