BTCUSD made a spectacular high on April 23. The move was north of 6% in a few hours. Bitcoin not only recovered from its previous day’s losses but also pushed past the $7,700 mark. Now, with the BTC reward halving set to take place within the next three weeks, the attention towards the crypto has skyrocketed. The same is the case for Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Tether (USDT), Bitcoin Cash (BCH), Binance Coin (BNB), Tezos (XTZ), etc.
Before delving into the fundamentals, let us take a look at the BTCUSD technicals. The day’s range for BTC is $7,432.80 — $7,612.55.
Here’s the hourly timeframe chart for BTCUSD. Source: TradingView.com
- It can be observed that after the spectacular rise, there has been a prolonged period of consolidation.
- The MACD line crossing over the signal line would take place soon.
- The Bollinger Bands shows the reduction in volatility.
- The short term moving averages are giving a bullish signal on Bitcoin.
Analyzing whether a spike or drop would occur post halving
It’s almost three weeks now to the halving. Analysts are using different social media platforms to outline their own opinions and predictions. And the fanfare and attention Bitcoin is getting is crazy. However, it is evident that despite all the theories, investors are not yet ready to take the plunge. People who hold BTC are not in a selling spree, and people who wish to own BTC are not buying. Hence, the consolidation.
Most of the bullish analysis be various The justification for the claim is the historical trend. Post each halving, BTCUSD has increased exponentially. And the social media attention and popularity Bitcoin has gained now, is all the more reason for a massive upside of the BTC.
The chance of BTCUSD plummeting, post the halving
Our analysis suggests that the probability of Bitcoin crossing all estimates and surging past the $9k mark is less likely. At least that is what the scenario is, as of now.
Despite all the glory and attention towards Bitcoin, one cannot turn a blind eye to the current economic and financial crisis. The International Monetary Fund or IMF says most of the developed nations, as well as the developing, might experience a prolonged period of recession.
More than twenty-six million people in the United States alone have lost their jobs, many of them are looking for work from home opportunities.
