The price of Bitcoin (BTC) could be the beginning of an unprecedented recovery in the medium termAfter the top-ranked cryptocurrency by market cap has grown 150% since March.
Historical data show that when the long-term price development of Bitcoin in a local fund changed, which provokes a strong reaction from buyers, saw an expanded upward trend.
Earlier data shows that Bitcoin will see a massive jump after halving
Immediately after halving – now only five days- Most technical analysts expect a slight decline. In previous halving in 2012 and 2016, Bitcoin’s price rose before halving and was corrected immediately after it was activated.
However In the medium term, the price of Bitcoin tends to rise longer after halving. The first led to an astonishing 10,000% gain, while the second led to a price increase of 2,500%.
In a broader timeframe, the price of Bitcoin has been technically lower, as it dropped to $ 3,100 in December 2018 and $ 3,600 in March 2020. The term “lower highs” refers to when the price of an asset falls to a low that is still higher than the previous local low.
Historical data shows that Bitcoin is preparing for a new rally and cycle. Source: Mohit Sorout
Based on BTC price history since 2012, Mohit Sorout, Founding partner of Bitazu Capital, suggested that Bitcoin’s rally could start right after reaching $ 9,500.
“A live recording of BTC’s warm-up” he said.
If the long-awaited correction doesn’t happen after halving, this would further strengthen the argument that Bitcoin is on the way to becoming a digital store of value. and money without borders and agnostic about nations.
Hedge fund manager and crypto investor Logan Han said Bitcoin could approach an all-time highas BTC did not correct in May.
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If there is no dumping that will soon halve, BTC could directly hit its all-time high.
Currently Bitcoin’s price is at a turning point where exceeding the $ 10,000 level will likely result in a FOMO-driven rise to new local highs above $ 13,500.
The cryptocurrency trader Scott Melker said a rally over $ 10,552 would give Bitcoin a strong uptrend..
A daily close above $ 9,214 would be bullish. Breaking the descending black line would be more bullish. Breaking the purple line at $ 10,522 would be a higher high and bearish forever.
Bitcoin is approaching a higher level of resistance. Source: Scott Melker
Positive fundamental data lead to optimistic forecasts
In the past few weeks, big futures exchanges like Binance and Coinbase had a record volume of spot trades.
According to TradeBlock Binance’s spot trading volume reached $ 23 billion at the end of AprilThis indicates that more and more private investors are accumulating Bitcoin.
Binance has a record volume of Bitcoin spot trades. Source: TradeBlock
If a price increase is not supplemented by the actual retail volume, Bitcoin can become vulnerable to a sharp correction.
In October 2019 When the price of Bitcoin rose from $ 7,700 to $ 10,600 in two days, due to the cascading of short contract transactions at BitMEX, BTC / USD dropped to $ 6,400 the following month.
However The impressive response from retail investors, which fueled Bitcoin’s rapid recovery from $ 3,600 to $ 7,700 in early April, high spot volume, and high liquidity in the crypto market suggest that a medium-term rally may be just beginning. term.
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