The halving is coming, yo!

And while this seems like the best news to many investors, so many others are extremely bearish on the fact that the halving is coming, and are encouraging shorting all long orders at least a week before the time.

So who should you believe?

Well, the master of chart art is extremely bullish on the halving aftermath. Let me tell you why, as well as why some people are bearish.

WHY I AND OTHER ANALYSTS ARE BULLISH

I am extremely bullish because of the following reasons:

• The economic law that states states that "should a product deemed valuable be decreased in circulation, the forces of demand will outweigh the forces of supply, causing the price of the commodity to rise, often to unreasonable levels". Following the set up of this law, we can see that Bitcoin is currently at 10.3k. It is valued at that price. Should the amount of Bitcoin coming in on a daily basis be cut into two, it will obviously increase the price. Probably not to $100k, but I don't be surprised to see $20k.
• Bitcoin's past performance after halvings: Checking a chart of bitcoins performance post halving, we would see that approximately 3 months after the halving event occurs, the price jumps to a crazy level. Since Technical analysis deals with the comparison of past prices to determine future prices, it is only certain that we would see a spike in prices a few days after the halving.

Those are my only two reasons. They are not too many, but they are quite valid if you understand market mathematics.

So why are others bearish?

Here's why.

• Bitcoin doesn't follow fundamental market mathematics: This is possibly their most valid reason. Bitcoin doesn't follow the regular rules of the market, which include having an intrinsic, as well as extrinsic value. Bitcoin more or less does whatever it wants at this point, and while technical analysis tools work with it to an extent, they aren't perfect like the way they work in stocks.
• The halving will push out many small miners: Another extremely valid point. The halving effect reduces the reward for mining a successful block. Miners who are hardly surviving after mining costs right now will crash and burn after the halving. They will phase out of existence because they won't see mining as a profitable venture anymore. (This may actually increase the price in the long run though, but that's for another post)

So which one are you? Bullish or bearish?