Bitcoin price is preparing for a strong mid-term rally and a new cycle, based on past market data and previous halving events.
Bitcoin (BTC) price has gained 150 percent since March. This may start a medium-term uptrend. Historical data shows that Bitcoin’s long-term price trend is climbing up when it changes with a strong response from buyers at a local level.
Can react positively
Right after Halving, most technical analysts envision a small retreat. In the halves of 2012 and 2016, the price of Bitcoin first rose and then immediately corrected. However, in the medium term, Bitcoin price shows a long upward trend after halving.
Bitazu Capital’s co-founder, Mohit Sorout, suggested that based on the price trend of BTC since 2012, Bitcoin could start rally right after reaching $ 9,500:
“If the post-halving correction does not take place, Bitcoin’s digital warehouse will have an unlimited and independent structure that will strengthen.”
The financial hedge fund manager and crypto investor Logan Han said that if BTC did not recover in May, it could rise to a record level.
If there's no halvening dump soon, $BTC could run straight to ATH.
— loganhan_ (BTC above 100,000usd 2020 4Q) (@loganhan_) May 7, 2020
Crypto trader Scott Melker stated that a rally above $ 10,555 will create a technically strong uptrend.
“Daily closing above $ 9 thousand 214 indicates an upward trend. Breaking the descending black line forms the bull market. Breaking the purple line at $ 10 thousand 522 will raise the higher level even higher. ”
Will the Ascension Begin?
Record levels have been recorded in large-term exchanges such as Coinbase in recent weeks. When an increase in price is not supported by real retail volume, it can leave Bitcoin vulnerable to a steep correction.
In October 2019, as Bitcoin price rose from $ 7,700 to $ 10,600 in two days as a result of the gradual increase in short-term liquidation transactions in BitMEX, BTC rapidly declined to $ 6,400 during the next month.
Nevertheless, the retail investors’ impressive response, pushing the rapid recovery of Bitcoin from $ 3,600 to $ 7,700 at the beginning of April, shows that it has recorded high spot volumes and high liquidity in the cryptocurrency market, suggesting that a medium-term rise may begin.