See More

Bitcoin Could Consolidate Until Next Halving in May, Says Cryptocurrency Trader

2 mins
Updated by Adam James
Join our Trading Community on Telegram
Every time 210,000 blocks are mined on the Bitcoin Network, it goes through an event which is called a halving. This means that the rewards for mining are cut in half. As halvings occur approximately every four years, there have been two such events in Bitcoin’s past.
The first halving occurred in November 2012, when miners reached block 210,000. After that, the rewards for mining were cut from 50 BTC to 25 BTC per block. The second halving occurred in June 2016, after miners reached block 420,000. Afterward, the block rewards got cut in half again, going from 25 to 12.5 BTC. While the third halving has not yet occurred, it is expected to occur sometime in May 2020, possibly earlier. Twitter cryptocurrency analyst @davthewave used a logarithmic growth curve in order to determine future Bitcoin price movement. Interestingly enough, he predicts a period of consolidation and a slight decrease until May of 2020, at the time when the halving is expected to occur. The tweet does not state that we are currently in a fractal between the outlined periods. However, it says that we could trade sideways for a long period of time. Therefore, the price in May and June 2019 should behave similarly to that in May and June 2017. BeInCrypto discussed this possibility in a previous article that predicts BTC’s price before and after halving.

Logarithmic Resistance

We drew a curved resistance line only slightly dissimilar to that of @davthewave, connecting the highs throughout the 2018 correction. The price broke out above this resistance line in May 2019 and the rate of increase accelerated rapidly afterward. Bitcoin Log Price Since then, it has not come back to validate the resistance line, which is a very common movement pattern. The dashed resistance line is set to coincide with the green support line, which has been in place since 2013. However, the price does not necessarily have to decrease in order to reach it. Rather, if it were to consolidate until the middle of next year, it would eventually reach the line all the same. Looking at the daily price movement, a very rough outline of how this might play out is given below: Bitcoin Price This would actually fit well with the 2017 movement, in which there was an upward move before a long period of consolidation. Afterward, a gradual decrease would follow until the price reached $7,000 again around May or June of 2020. Do you think Bitcoin will consolidate before halving? If not, will it increase or decrease? Let us know in the comments below. Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Valdrin-Tahiri.jpg
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
READ FULL BIO
Sponsored
Sponsored