BTC at record level
The Bitcoin confirms the previous day’s gains and directly attacks the next resistance at 7600 USD. Due to the pending halving, the No.1 crypto currency could even advance into the five-digit range in the coming days. However, several conditions must be right for this to happen. We take a look at the current situation.
Bitcoin course in detail
At the time of writing, the BTC is quoted at USD 7581. For hours the bulls have been attacking the resistance at 7600 USD. Should this fall sustainably, a bull run into the USD 8000 range would be quite realistic. From a bearish perspective, the trend line at 7400 USD represents the new support level. Further down the line, the supports at $7200 and $7000 are coming. Meanwhile, the current daily volume is around $34 billion.
Halving: Perfect timing?
The upcoming halving event could hit the crypto space at an optimal time. A perfect starting point would be if the traditional markets continue to recover from the consequences of the coronavirus pandemic and the BTC maintains the correlation to the stock indices. The rising number of Google searches already implies the growing interest of investors. As soon as there is a real hype around the halving, the event would move into the focus of the mainstream media. Breaking through the important USD 10000 mark would also have a major psychological impact on the market situation.
Watch out for FUD and FOMO
The highly volatile crypto market is extremely sensitive to FOMO (fear of missing out) and FUD (fear, uncertainty and doubt). It is quite possible that panicked investors will be afraid of missing out on something before the halving. This could boost the price without changing the fundamentals. One should not be deceived by these movements.
Bitcoin dominance declines
Less than 3 weeks before the BTC Halving Event, the BTC Dominance Index falls to a value of 63.5 %. Accordingly, all Altcoins share a market share of 35.5 %. Alternative assets are increasingly in the focus of investors these days and they justify this with strong price rises. Ethereum (current price: approx. USD 195) is rushing towards the USD 200 mark. Today, the “Smart Contract” coin continues to deliver the best performance of all the top 20 currencies.
The third BTC Halving Event is just around the corner and the tension is rising. In less than 3 weeks, the Coin Rewards will be reduced from 12.5 BTC to 6.25 BTC per prospected block. As a result, the inflation rate drops to around 1.8 %. These characteristics strengthen the “digital gold” in its role as a crisis-resistant “store of value”. Several situations could have a positive impact on the chart. These include stable, traditional markets, a hype or the FOMO of investors. However, there is no guarantee that the halving has not yet been fed into the price.