Famous Bitcoin kit: Bitcoin may crash, halving has already been rated in the current BTC course!

Famous Bitcoin kit: Bitcoin may crash, halving has already been rated in the current BTC course!

By World Crypto | World Crypto | 29 Apr 2020


One of the famous Bitcoin whales is hinting that the possible effect of the upcoming halving has already been appreciated by investors and traders, and therefore, is embedded in the current BTC rate.

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The third halving in the history of Bitcoin should happen in 14 days. A powerful rally is usually associated with this event, during which the leading crypto asset reaches a new historical maximum.

Well-known crypto kit Joe007 said that the effect of halving is already included in the price of BTC, which makes cryptocurrency vulnerable to collapse.

Crypto trader Crypto Dog turned to his subscribers asking if “halving is rated” in the current BTC course, to which Joe007 received a sarcastic response:

Nooo, of course it's not priced in. On the very day of The Great Halvening, everybody will finally realize how underpriced BTC is, and they will all rush to buy it. In droves. With their unemployment checks.

Users ambiguously accepted the whale's statement, because, according to Bitfinex, Joe007 has a large short on BTC. For example, last month a trader lost $ 11.3 million, expecting a short-term correction of the BTC rate:

82bda2260d21121bafaa5a91772d014f946310c4cf3949d8003b8baa33b7a082.png                                            Bitfinex Whale Rating 

Halving is a planned event

It is noteworthy that halving occurs every four years. This is a programmed process to reduce the remuneration of miners who are forced to adapt to the changing economic conditions of the ecosystem.

Keith Joe007 is right, halving is not an unexpected event. Moreover, according to statistics, miners begin to prepare for it in at least 12 months. For example, major miners are negotiating with electricity suppliers to lower the costs of their business.

Therefore, in the short term there is no reason to expect a sudden and unexpected jump in the price of Bitcoin just because halving is about to happen or has just happened.

From a technical point of view, a strong pump is also unlikely. The price of BTC fluctuates around the area of ​​long-term resistance between $ 7,700 and $ 8,300. One of the most important moving averages for 200 days is located around $ 8,000:

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Large clusters of sell orders for $ 8,000 on major spot exchanges also signal that Bitcoin remains vulnerable to a sharp correction.

Moreover, large traditional investors are increasingly hedging their positions, expecting that in the short term a significant downtrend may appear in the stock market. Given the correlation of Bitcoin with stocks and the instability of the traditional sector in the context of a large-scale pandemic, it can be assumed that the risks of correction in the crypto industry remain at a relatively high level.

 

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World Crypto
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