BTC halving is imminent, how will the encryption market perform in the future?
There is still more than a month before the halving of Bitcoin production. How will the price of Bitcoin go next? How will the encryption market perform? It is a topic of concern. Many people in the industry also gave different views.
Cryptocurrency trader and technical analyst Tone Vays said he is bullish on Bitcoin as the halving of its production looms. In a new issue of Bitcoin Trading, Vays said that Bitcoin's current price action may be similar to what happened in August 2015, when BTC fell to $207 and then began a long-term rise that peaked many years later, leading the The cryptocurrency reached an all-time high around $20,000.
Vays said he was surprised by last Thursday's rally, which took BTC from $6,214 to a high of $7,040. At this point, Vays said, the next two months will be key to tracking whether bitcoin’s price can surpass $8,000.
“Let’s see what happens in two months. Guess what’s going to happen in those two months? Halving, we just need to move above the 200-day moving average. So, I’m still very bullish on Bitcoin… I was Don’t expect a bounce. I really thought we had more downside here and then a bounce off the $6,000 area. But it’s nice to bounce back a bit earlier today.”
Meanwhile, veteran technical trader Peter Brandt said he thinks there could be more upside ahead. BTC could be in an ascending triangle, which could take the leading cryptocurrency to $8,400 in the short term, Brandt said.
But an analyst named Pentarh Udi believes that the global economic turmoil may deal a heavy blow to the price of Bitcoin, causing Bitcoin to fall below $3,000 again.
“Bitcoin price aggressively attacking weekly SMA200 amidst global financial panic. What I see may not end as I thought. With the huge underlying potential in global markets,… my bearish target is between $1800-$2500 In this case, the weekly 200 SMA will be breached and turned into resistance. Many times, affordability will need to break down and find support.”
Bitcoin topped $10,000 in February and fell last month as investors and financial markets reacted to the coronavirus, said Tim Draper, head of billionaire Draper Fisher Jurvetson Ventures. Break $4,000. He remains bullish on the leading cryptocurrency despite plunging bitcoin prices and ongoing macroeconomic turmoil.
In the interview, Draper warned that prolonged isolation due to widespread lockdowns could exacerbate the financial crisis caused by the disease. He also shared his thoughts on the projected V-shaped economic recovery, in which the U.S. will bounce back quickly from the current recession.
"If the government continues to keep people at home for two weeks, the economic V-shaped trend that everyone is talking about will not happen, and the recession may be worse than the virus at that time."
While crypto users expect bitcoin to halve in May to limit the supply of new bitcoins and fuel a bitcoin bull market, Draper said the event is only half the story.
“Bitcoin is a safe haven if the U.S. dollar loses value because of massive money printing in the U.S. and people know that gold is no longer worth buying.”
Crypto investors likewise see a silver lining in the current situation. People are often reluctant to change during a bull market, but the current pandemic is driving a shift in habits, Draper said, as people look for better, cheaper and faster alternatives in banking, health care and other industries. He believes the crisis could spur the adoption of new technologies such as blockchain, smart contracts and bitcoin.
“Once people realize that governments are bailing out markets by devaluing fiat currencies, they will start accepting the use of bitcoin. People will realize that bitcoin is more open, transparent and smoother than the dollar, peso, naira or drachma , more valuable, and more substitutable.”
