Miners, Whales and Leveraged Traders.
Bitcoin is approaching its historic rewards halving, which is part of it's natural market cycle. Bitcoin is a commodity, and behaves as such. It is seasonal and has a full technological and technical price action that is evident in prior cycles. This is what to expect before and following the rewards halving of May 2020.
As we all know, Bitcoin has a seasonal price history that we can reasonably anticipate. Bitcoin performs well during the end of the year's second quarter, excels from June to October, peaks in November and tanks from December-February or March. This cycle is highly predictable, but like any other commodity on the market other factors may influence the price action. Recent geopolitical instability and the run to safe haven assets have spurred investment into Bitcoin. The upcoming CME options market is also weighing on Bitcoin's price. We seem to have forgotten about the Bitcoin ETF and China's cryptocurrency endorsement for now, but don't forget those facts.
As Bitcoin hovers between $8,000-$8,400, expect to see short-term price moves that are consistent with traders taking profits. Bitcoin has risen from $7,000-$8,100 with little resistance over the past two weeks, and the chart still looks ugly if things start to stabilize in the equity markets. Investors have taken to chasing alternative and safe haven assets including Bitcoin and gold lately. Gold has risen from $1,400 and if the pattern holds, expect to see $1,600 gold in short order.
As the dollar softens, expect to see a combination of geopolitical instability, falling bond yields and a declining equity market yield contribute to a rise in Bitcoin's price.
What will happen as we approach May of 2020, the fabled Bitcoin reward halving? Expect to see a manipulated selloff due to whale and miner cooperation. The coin may see lows below $4,000 as options and investors see is possible. Expect to see miners hoarding coins before dumping them after the halving.
Traders, whales and miners are all going to do well as the halving approaches. Bitcoin desperately needs more grassroots adoption and usage cases. The altcoin market will continue to be under pressure as Bitcoin's market dominance increases. Expect to see a flattening of many of the 3,000+ cryptocurrencies on the market today.
In conclusion, I would suggest waiting for a good entry price below $5,000 in Q2 2020 and then a selling between October or Novemeber of 2020. It will be fun to watch.
Originally published in my Publish0x account I own at:
Also published in my Weku, Bearshares, Golos, Minds and Whaleshares accounts I own.
Picture from Pixabay.
https://www.newsbtc.com/2020/01/13/only-120-days-remain-until-bitcoins-halving-heres-what-to-expect/
