- eToro analyst believes that BTC has a strong bullish potential ahead of the halving.
- From the technical point of view, the recovery is capped by $9,000.
Bitcoin is hovering below $9,000, unable to clear the resistance amid heightened market uncertainty and anxiety ahead of the halving. US-China tensions add more fuel to the fire and make traders less inclined to open long-term positions. Instead, many market players prefer to cash out once their positions turn green.
Bitcoin’s correlation with the S&P 500 is back on the agenda as the sell-off on the cryptocurrency markets coincided with the resumed bearish momentum on the US stock markets. However, eToro experts believe, there is a chance that BTC moves above $10,000 even before the block reward is halved.
We think it is likely the [bitcoin] price will go above $10,000 before the halving actually takes place, due to a frenzy of activity among bullish investors, Simon Peters, bitcoin and cryptocurrency analyst at brokerage eToro said as cited by Forbes.
He also added that Bitcoin bulls were likely to position themselves before the event that was likely to drive prices higher.
In just seven days the reward received by Bitcoin miners will be reduced from 12.5 bitcoin per block to 6.25. Such a reduction is programmed to take place each 210,000 block, which happens roughly once every four years.
BTC/USD: Technical picture
At the time of writing, BTC/USD is changing hands at $8,750, down over 3% on a day-to-day basis. The first digital coin hit the intraday low at $8,535, but the buying interest located on the approach to $8,500 helped to push it back above $8,700.
The local resistance area is created by a combination of 1-hour SMA40 and SMA100 on approach to $8,900. Once it is out of the way, the upside is likely to gain traction with the next focus on psychological $9,000. Bitcoin bulls made several attempts to settle above this barrier on the weekend, but all the growth attempts were heavily sold.
If $9,000 is cleared, Sunday’s high $9,200 will come into focus. This area separates the price from an extended recovery towards $9,500.
On the downside, the sell-off below $8,500 will open up the way to critical $8,000 reinforced by 61.8% Fibo retracements for the downside move from February 2020 high and a combination of daily SMA100 and SMA200.
BTC/USD daily chart