A large Bitcoin whale hinted that the upcoming halving is already priced and the BTC price may drop after the event.
The third Bitcoin (BTC) halving will take place within 14 days. Most people expect the BTC price to rise to an all-time high after halving. Surprisingly, one of the biggest Bitcoin whales in the cryptocurrency market, Joe007 hinted that halving was already priced, which could leave the cryptocurrency vulnerable to a sudden drop in life.
Nooo, of course it's not priced in. On the very day of The Great Halvening, everybody will finally realize how underpriced BTC is, and they will all rush to buy it. In droves. With their unemployment checks. https://t.co/wAtitWuZbt
— ʲᵒᵉ (@J0E007) April 26, 2020
Joe007 said in a message sarcastically:
“No, of course, it wasn’t priced. On the big halving day, everyone will finally realize how low the BTC is priced and they will all be queuing to buy. Of course they can. With unemployment benefits… ”
Joe007 has opened a huge amount of short positions for Bitcoin, as evidenced by the data on the Bitfinex list. Trader appears to have sold $ 11.3 million in BTC last month. Given that the price of Bitcoin has risen to about $ 7 thousand 700, it turns out that the whale is standing in a short position and expects the BTC price to drop in the short term.
Not a One-Time Transaction
Bitcoin halving activity, a process that reduces the amount of BTC produced by miners, takes place every four years. This activity, which halves miners’ income overnight, forces miners to adapt to change and often causes small-scale miners to move out of the ecosystem. Halving is not an unexpected event. In fact, the mining industry has been preparing for this process for about 1 year by setting up strong cash buffers and negotiating with electrical service providers to reduce the mining cost.
In the short term, there is no clear reason to expect a sudden increase in Bitcoin price due to the approaching halving. When looking at the history of the crypto money market, there is usually an increase after the halving, not before the halving.
Bitcoin price is currently floating in a multi-year resistance field between $ 7,700 and $ 8,300. The 200-day simple moving average, which indicates a long-term major return point for an asset or index, also now points to $ 8,000.