The price of the leading cryptocurrency traded nearly $9,400 before retracing to $9,200 at the time of writing. Several traders had anticipated extended gains ahead of bitcoin halvening that is scheduled to take place on May 12.
The price of bitcoin peaked at $9,424 on BitMEX on Wednesday before retracing a few hundred dollars down on Thursday. Bitcoin is currently holding weak support at the $9,000 level and resistance at $9,500. The price of bitcoin surged because of the upcoming halvening, according to several analysts.
The halvening FOMO has fueled the surge in bitcoin’s price.
According to several BTC traders and analysts, the recent bullish sentiment in bitcoin’s market has been triggered because of the upcoming bitcoin halvening. The highly anticipated event is scheduled to take place on May 12 next week. The halvening event would slash the leading cryptocurrency’s daily supply rate by half as the reward for each mined block would be reduced in half. BTC traders claim that the halvening narration has created a FOMO among traders and hence the surge in bitcoin’s price.
A major pullback is expected in the short term.
The recent upsurge in the price of bitcoin happened following a historic plunge in mid-March when the bitcoin went from nearly $8,000 to below $4,000 in a very short time. The US Federal Reserve’s vast and expanding stimulus program has also played a role in the recent bullish bitcoin run. However, the price of bitcoin is expected to fall in the short term.
The head of the global balanced risk control strategy at Morgan Stanley, Andrew Harmstone, in an interview with CNBC, explained that the positive rallies across emerging markets occurred because investors are denying the “damage that’s been happening to the global economy. He further noted that bitcoin and equity markets are still highly volatile. Even according to the technical indicators, bitcoin is poised for a major pullback in the coming time.
