The Bitcoin (BTC) price shows a similar trend that was observed in April 2019 when the BTC rose from USD 5,000 to USD 14,000 in two months. Given the similarity of price movements, there is a possibility that the cryptocurrency with the best market capitalization will approach a new local high in the second half of 2020.
After a price drop just before halving to $ 8,200 on May 11th BTC quickly recovered to over $ 9,100 in 48 hours. Displays the strength of the current BTC pulse.
Fractals are usually accurate, especially when combined with strong arguments
Bitcoin is halved every four years. Bitcoin’s blockchain network block reward has halved three times in the past 11 years. Every time a halving occurred, this triggered a profit of more than 2,500% in the following months.
Halving affects the price of Bitcoin in the long run, as this is the only event or mechanism that can affect the new supply of BTC. Bitcoin, which mimics a price trend that was last seen in the half-week in mid-2019, can be seen as a positive short-term forecast as it follows a sharp drop in news sales.
In early May 2019, the price of Bitcoin began to recover from falling below $ 3,000. Coincidentally, BTC dropped to just $ 3,600 two months ago in March 2020.
Bitcoin price developments in mid-2019. Source: Tradingview
Until May 30th Bitcoin’s price recovered to $ 9,100 and after a brief drop to $ 7,500, it started to recover. By June 26, 2019, BTC peaked at $ 13,920 at BitMEX, which is a local high.
The recovery period and price level are in line with Bitcoin’s current price movement.
In March 2020, the BTC / USD pair started to recover from USD 3,600, mainly due to Coinbase’s real retail demand. The exchange said at the time:
But apart from the rush, there are two clear things: our retail brokers’ customers were buyers in the fall, and Bitcoin was the clear favorite. Our customers generally buy 60% more than they sell, but during the collapse, that value rose to 67%, took advantage of market depressions and, even with extreme volatility, was a strong demand for crypto assets.
As the local retail record coincided with rising institutional demand, according to the Grayscale report for the first quarter of 2020, Bitcoin continued its recovery. Finally, BTC rose to $ 10,085 on BitMEX in the first week of May 2020.
The price development of Bitcoin shows similarity to the fractal in April 2019. Source: PabloPicasso
The potential variable that can support Bitcoin’s recent upswing
A strong argument for continuing Bitcoin’s ongoing recovery is the increase in spot volume along with a constant network hash rate.
Unlike previous parabolic rallies, the rise from $ 3,600 to $ 10,085 in the past two months has been led by Binance, Coinbase and other spot exchanges.
The open interest from BitMEX, Binance Futures and OKEx remained relatively low, especially given the positive momentum that BTC showed.