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The widely-anticipated thirdhalving finally took place Monday at 19:23 UTC. Unlike what over-optimistic bulls were perhaps hoping for, the BTC-USD pair remained relatively low-key going into the milestone event (even though some wild price fluctuations went on through the last 3-4 hours leading to block #630,000).
The final block (# 629999) before halving 2020 was mined by Miner f2pool. They left a special message for BTC loyalists and When traders think about cryptocurrencies, they focus more on how they can profit from the price swings. But, what happens... More in the block’s coinbase transaction, reading:
NYTimes 09/Apr/2020 With $2.3T Injection, Fed’s Plan Far Exceeds 2008 Rescue
For those out of the loop, f2pool’s note was a tribute to Nakamoto’s original note embedded in Bitcoin’s genesis block that carried the message:
The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.
As for Bitcoin’s possible price movements in the coming days, the best we can do at this juncture is to make educated guesses.
After all, the halving we have just witnessed is completely different from those in 2012 and 2016. BeInCrypto highlighted three key factors yesterday arguing that the 2020 halving would be a completely different act altogether.
Meanwhile, in other important news from the past 24 hours:
If the Bitcoin price movement is following the same path as it did in February, the $9,300 broken support area is likely to act as resistance afterward. If the pattern is followed in its entirety, the bears will eventually push the price to a new low of $3,352 sometime in June 2020.
Bitcoin seems to have fallen back below the long-term descending resistance line that has been in place for the past 882 days. This suggests that the price is likely to begin a long corrective period.
There could be a temporary relief bounce towards $9,200, though. But in a slightly longer scheme of things, the price will likely take quite a beating after reaching that local high. The closest support area is found at $7,700.
The Ethereum (ETH) price had been following an ascending support line since March 13. While it had initially moved considerably above this line, it reached a high of $227 on April 30 and has been decreasing since.
On May 10, 58 days after the creation of this ascending support line, the price finally broke down.
Controversial stablecoin Tether (USDT) looks all set to one-up Ripple () as the third-largest cryptocurrency by market cap.
The Stablecoins are a class of cryptocurrency that aims to provide price stability. A perceived drawback of cryptocurrency is price volatility.... More now has a cap of around $8.6 billion while XRP is valued at $8.7 billion. The way the Tether Treasury has been minting USDT over the past several weeks, it looks like that the stablecoin will surpass that $100 million gap by the end of this week.
Meanwhile, Tether has still not allowed for a proper third-party audit to prove its USDT is backed 1:1 by USD.
Bitcoin’s peak spot trading volume in 2016 was in June when $1.5 billion in monthly volume was recorded. That’s pretty much the proverbial peanut when compared to the April 2020 monthly volume of nearly $30 billion.
On average, the 2020 spot trading volume is up 50x compared to the corresponding figure from 2016.
It is worth noting here that in 2016, Bitcoin rose from $400 to $600. Whether or not Bitcoin will repeat history this time around remains to be seen.
Despite a low-key performance going into the third halving, Bitcoin has pulled off a significant improvement in several key underlying metrics since its second halving four years back. Since 2016, the Bitcoin network’s on-chain benchmarks like retail purchase, address owners, hash rate, and transaction volume have grown by leaps and bounds.
These strong fundamentals perhaps explain why the majority of the active participants on Crypto-Twitter remain bullish on the long-term potential of the alpha-cryptocurrency.
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