Since the pump to 10.5K, BTC is ranging between the 100MA and 200MA. When it goes up, it is being held down by 100MA. When it goes down, it is being supported by 200MA. This has become the trend for 11 days and the daily candles have tightened while 100MA and 200MA are moving closer towards each other. Death Cross in the making? It is still pretty immature to tell.
Let's check the chart. The previous 100MA and 200MA crossover resulted into a bear market pushing BTC to 6K last year and further dropping to 3K. Will this time be the same should it happen? My opinion is NO. The situation of Crypto last 2018 is different compared to 2019. In 2018, regulators were hunting down scam shitcoins putting a ban on BTC. Today, we see an improved sentiment with blockchain and BTC. Bakkt which launched its trading platform few weeks ago have observed a significant rise in volume. China encourage its citizen to support blockchain development projects. Facebook planned to launched LIBRA and so on.
But the most important event in the coming months is the 3rd HALVING this May 2020. Big miners have mixed opinions about the direction of the price near and post the halving date but when you look at previous halving events, price has significantly rise higher. From an economic standpoint, when the supply is cut or reduced, it creates more demand therefore increasing the price and with BTC max supply of 21 Million minus 3 million lost, I don't see it will do the opposite. Will this halving be the same as the previous events? Will we see exponential increase in BTC price? My opinion is YES. But will not probably be that much. It is possible that we will see new all time high. BUY the dip!
Let's check the chart. The previous 100MA and 200MA crossover resulted into a bear market pushing BTC to 6K last year and further dropping to 3K. Will this time be the same should it happen? My opinion is NO. The situation of Crypto last 2018 is different compared to 2019. In 2018, regulators were hunting down scam shitcoins putting a ban on BTC. Today, we see an improved sentiment with blockchain and BTC. Bakkt which launched its trading platform few weeks ago have observed a significant rise in volume. China encourage its citizen to support blockchain development projects. Facebook planned to launched LIBRA and so on.
But the most important event in the coming months is the 3rd HALVING this May 2020. Big miners have mixed opinions about the direction of the price near and post the halving date but when you look at previous halving events, price has significantly rise higher. From an economic standpoint, when the supply is cut or reduced, it creates more demand therefore increasing the price and with BTC max supply of 21 Million minus 3 million lost, I don't see it will do the opposite. Will this halving be the same as the previous events? Will we see exponential increase in BTC price? My opinion is YES. But will not probably be that much. It is possible that we will see new all time high. BUY the dip!