Cryptocurrency market is highly efficient because we see all available information is immediately used by market players. Hypothesis of efficient market suggests price action should react far before an event happens.
Block reward halving happens in May. Halving is a double reduction of miners' reward and thus it is a double increase of fundamental production value. Production costs are closely connected with Bitcoin market price
Thus according to the Efficient markets theory Bitcoin price should have been very bullish during the last months and now it is adjusted and at its real after-halving value
But what do we see now ?
Bitcoin dramatically felt down in March and is now lower than it was in February.
It can be explained by an impact of oil prices and corona virus crises. Oil price went down hence production of bitcoin at fas powered facilities felt down. At the same moment the world economy had a great reduction due to corona virus crisis. Hence in the short-term we have a decrease which can bring the price up to the global support of $6 390 level
The most important is that in such conditions block reward halving is still more influential parameter because price action managed to recover fast and we see a great upward bullish pressure.
Overall the forecast is the following
Bitcoin price will have a small increase within 1-2 days till the RSI band near $7 049 level where a great resistance is located.
This level was rejected numerous times during last week thus the most probable scenario is rejecting and returning back to the channel with a subsequent decrease with ABC pattern to its lower edge around $6 400. At this level we recommend to accumulate long positions because further we will have only few weeks before halving happens and this level will be a new global bottom.
Corona and oil crises are temporal while halving is permanent and price will obviously adjust and go to higher levels due to needs of the whole industry.
Best regards,
SkyRock signals team
Block reward halving happens in May. Halving is a double reduction of miners' reward and thus it is a double increase of fundamental production value. Production costs are closely connected with Bitcoin market price
Thus according to the Efficient markets theory Bitcoin price should have been very bullish during the last months and now it is adjusted and at its real after-halving value
But what do we see now ?
Bitcoin dramatically felt down in March and is now lower than it was in February.
It can be explained by an impact of oil prices and corona virus crises. Oil price went down hence production of bitcoin at fas powered facilities felt down. At the same moment the world economy had a great reduction due to corona virus crisis. Hence in the short-term we have a decrease which can bring the price up to the global support of $6 390 level
The most important is that in such conditions block reward halving is still more influential parameter because price action managed to recover fast and we see a great upward bullish pressure.
Overall the forecast is the following
Bitcoin price will have a small increase within 1-2 days till the RSI band near $7 049 level where a great resistance is located.
This level was rejected numerous times during last week thus the most probable scenario is rejecting and returning back to the channel with a subsequent decrease with ABC pattern to its lower edge around $6 400. At this level we recommend to accumulate long positions because further we will have only few weeks before halving happens and this level will be a new global bottom.
Corona and oil crises are temporal while halving is permanent and price will obviously adjust and go to higher levels due to needs of the whole industry.
Best regards,
SkyRock signals team
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