While bitcoin is still ranging, I would like to speculate what to expect from the approaching halving of the block reward event and how it was last time.
November 28, 2012
The first Bitcoin halving takes place to reduce mining rewards to 25 BTC
As you can see on the chart below bitcoin price experienced two falls (40% and 25%) prior to date. After the Halving BTC didn't fall that deep and went straight up after 50 days.
July 9, 2016
Second halving takes mining reward down to 12.5 BTC.
Two months prior to halving, Bitcoin managed to grow by 75% and fall by 23%. And after 22 days from the event's date, it falls 30%. After that, the price only climbed up.
May 12, 2020
About year to date, the price was in some sort of big channel and sharply dropped by ~57% due to coronavirus outbreak about 70th days ago.
So, what can we expect?
It needs to remember, all the above is just speculation, and bitcoin can easily fly to the moon or dump to the ground on the 12th of May, but having the information about previous events could help to prepare for a new one.
Hit the "LIKE" button and follow to support, thank you.
Information is just for educational purposes, never financial advice. Always do your own research.
November 28, 2012
The first Bitcoin halving takes place to reduce mining rewards to 25 BTC
As you can see on the chart below bitcoin price experienced two falls (40% and 25%) prior to date. After the Halving BTC didn't fall that deep and went straight up after 50 days.
July 9, 2016
Second halving takes mining reward down to 12.5 BTC.
Two months prior to halving, Bitcoin managed to grow by 75% and fall by 23%. And after 22 days from the event's date, it falls 30%. After that, the price only climbed up.
May 12, 2020
About year to date, the price was in some sort of big channel and sharply dropped by ~57% due to coronavirus outbreak about 70th days ago.
So, what can we expect?
- We can expect the second drop after about a month or less after the halving, like in 2016, i.e 'sell-the-news' reaction.
- High volatility - like a pump to $10300 (high channel boundary) and dump to $7200 (lower).
- Confident further growth only after 2+ months after the halving
It needs to remember, all the above is just speculation, and bitcoin can easily fly to the moon or dump to the ground on the 12th of May, but having the information about previous events could help to prepare for a new one.
Hit the "LIKE" button and follow to support, thank you.
Information is just for educational purposes, never financial advice. Always do your own research.
