According to historical data and price dynamics after halving, the leading cryptocurrency is preparing for a powerful medium-term rally.
Despite the fact that since mid-March, Bitcoin has risen in price by 150%, analysts assume that the unprecedented medium-term rally is just beginning. Historical data indicate that after the BTC long-term price trend reached a local bottom with subsequent activation of buyers, the upward momentum intensified.
Short-and medium-term prospects of the main cryptocurrency after a halving
Most analysts believe that immediately after a halving in the BTC market there will be a slight rollback. In previous cycles in 2012 and 2016, the price of Bitcoin grew immediately before the halving and was adjusted immediately after its activation.
However, in the medium term after a halving there is a long period of growth. After the first halving, Bitcoin went up by 10,000%, and after the second - “only” by 2500%.
From a technical point of view, when the BTC price fell to $ 3100 in December 2018 and $ 3600 in March 2020, higher lows were set on the higher timeframes.
Bitazu Capital founder Mohit Sorout has analyzed the price dynamics of BTC since 2012 and suggested that after reaching the $ 9,500 mark, a bull rally will only begin:
Bitcoin is just warm up.
If the much-anticipated correction after halving does not happen, this will reinforce the theory that Bitcoin could become a digital store of value and an independent currency.
Hedge fund manager and crypto investor Logan Khan said that Bitcoin can update the historical maximum if there is no dump after halving:
If in the near future there will not be a dump related to halving, Bitcoin can go directly to a record price maximum.
Today, Bitcoin has already overcome key resistance, and soon the bulls can test the $ 10,000 mark amid increased FOMO sentiment.
Well-known trader Scott Melker noted that a movement above $ 10,552 will form the technical conditions for a more powerful uptrend. Yesterday, he wrote on his Twitter:
A day close above $ 9,214 would be bullish. A break of the descending black line will be an even more bullish signal. A break in the violet line at $ 10,522 will set a higher high and will permanently close the mouth of the bears.
Bitcoin is approaching an important level of resistance
Positive fundamental factors support bullish expectations
In recent weeks, large futures exchanges such as Binance and Coinbase have recorded record high trading volumes.
According to TradeBlock, at the end of April, Binance spot trading volume rose to $ 23 billion:
If the price increase is not supported by the actual volume of retail trade, this makes the asset vulnerable to rapid and unexpected correction.
However, the impressive reaction of retail investors to the BTC dump and the subsequent accumulation of the asset in April is a positive signal that the medium-term rally can only begin.
