$8,000 or $10,000?
On Wednesday, after a long period of consolidation, the No.1 crypto currency climbs above the 9000 USD mark. After quickly bridging the resistance at $9200 USD, it looks like a new bull run will take place. However, the bears are not giving in so easily. We will take a look at the current chart situation.
Halving hype already fed in?
In just under 5 days the time has come! The third Bitcoin Halving Event is just around the corner and the block rewards will be halved from 12.5 BTC to 6.25 BTC per prospected block. The Halving is an integral part of the Bitcoin system and implemented in the first block, the Genesis block. As a result, the inflation rate drops to a value of approximately 1.8%. Previous halvings had a direct influence on the price. Many experts are of the opinion that this influence affects the course several months before the actual halving. Whether the hype surrounding the halving event has already been fed into the share price remains unclear at first. However, it is reasonable to assume that the focus in the coming weeks will be clearly on Bitcoin and miners.
Feed-in yes or no?
At the last Halving Event in 2016, the Bitcoin chart showed only a small rise from 650 dollars to 675 dollars in the following week. However, in the months prior to the last Halving, the crypto currency posted a price gain of over 30%. According to this, we would have already completed the accumulation phase. What speaks against this is that this year is a completely new starting position. Bitcoin has made a name for itself in the mainstream over the past few years and the adaptation is impressive. As a result, the two events can only be compared to a limited extent.
Dominance Index at 66.7%
The Bitcoin Dominance Index is considered an important indicator to show the balance of power between the BTC and the Altcoins. Currently, 66.7% of the total market capitalization is in BTC investments, while the Altcoins share a market share of “only” 33.3%. This figure confirms the forecast that Bitcoin will become even more important.
These limits will be decisive
The high volatility, the shaky stock indices and the upcoming halving provide an optimal starting point for an exciting crypto-weekend. At the time of writing, Bitcoin is trading at a price of USD 9308. The bulls are now facing the important resistance at 9400 USD. This is where they failed with their recent attacks. Should the trend line be breached in the coming hours, the resistance at 9800 USD would only be a big hurdle before the bulls can break through into the five-digit range.
In the highly volatile crypto market, drastic price drops would not come as a surprise. Due to the high correlation to the traditional markets, a dump is always realistic. The USD 9000 mark is currently the new support level. Further down, the limits at USD 8800, USD 8400 and USD 8000 would act as support.