Cryptocurrency Market Update: Is Bitcoin prepping for a 2017-like parabolic rally?
- Bitcoin price rose above $9,000 in anticipation of the block reward halving set to occur in five days.
- Bitcoin rallied from $12 to $1,000 following halving in 2012 while the parabolic rally in 2017 hit highs at $20,000.
There are only five days left before Bitcoin undergoes its third halving. A lot has been said regarding the impact on the price of the world’s most traded cryptoasset. Many of the bullish predictions ride on the performance of Bitcoin during the past two halving events. PlanB, a pseudonymous analyst using the Stock-To-Flow Model recently said that Bitcoin could hit highs above $80,000 and even go as high as $100,000 towards the end of 2021.
In anticipation of the rally, Bitcoin surged above $9,000. The bullish trend extended towards $9,500. George McDonaugh, co-founder of crypto and blockchain move and shape the market made an interesting comment:
Narratives in the world of blockchain act like the Force in Star Wars.
You couldn’t be blamed for getting a little excited about what’s to come.
On the contrary, Bitcoin skeptics and critics say that this market is too volatile and, therefore, difficult to predict. Some add that the halving has already been price in and that no rally should be expected.
On the other hand, the known remains that the coin issuance would be greatly reduced after halving. The decreases in the reward per block mined from 12.5 BTC to 6.25 BTC would reduce supply and coupled with demand remaining the same, an increase in the price is expected.
Looking back at the previous halvings, Bitcoin surged from $12 to $1,000 in 2012 after the first halving. The largest cryptocurrency then broke out into a parabolic rally following the second halving in 2016 where it touched $20,000 towards the end of 2017.
Read more: With hash rate at all-time highs, Bitcoin miners rush to safeguard profits ahead of May halving
In a recent letter to investors the CEO of Pantera Capital, a crypto hedge fund, Dan Morehead said that if history is to repeat itself, then Bitcoin could easily run-up to $500,000 by the end of 2022.
Another Global Macro Investor Raoul Pal recently predicted Bitcoin rally to a massive $1m in three to five years. However, Pal does not quote the halving as the factor behind this rally. He said that Bitcoin “is already the best performing asset in all recorded history” and added:
It was born out of the financial crisis for exactly what is about to come in this crisis. This is literally what Bitcoin was invented for.
I can not express how bullish I am on bitcoin. We are at risk of losing the entire system right now. I know they will find a way to save it but all trust is lost.
— Raoul Pal (@RaoulGMI) March 19, 2020
Gold guys/girls - you’ll be fine too. It’s just that $BTC has bigger upside, by far but is riskier than gold
Bitcoin price update
Bitcoin is exchanging hands at $9,075 at the time of writing. An intraday high has been achieved at $9,117 while $9,200 is the key resistance zone. On the downside, $9,000 is Bitcoin’s pivotal level. Farther down, $8,800 is the initial support. Other key levels include $8,400 (last week’s support and $8,000 (buyer congestion zone).
Chart of the day: BTC/USD daily
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Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
