Halving Bitcoin (BTC) is scheduled for May 12th and May 12th Traders have mixed opinions about BTC pricing after the event. Some believe that “sales by news” will decline, while others expect a bullish continuation.
If the BTC, the most listed asset on CoinMarketCap, The price rises after halving and breaks its 315-day cycle, in which five consecutive failed attempts at a long rally took place. A sharp rally could occur.
Will the bullish momentum continue after halving?
Halving Bitcoin is the only mechanism that affects the production and delivery of BTC. Since Bitcoin is a deflationary currency due to its unchangeable monetary policy, anything that affects its offer will ultimately affect its price..
Traders have come to expect a sale after halving because it is an event set in stone. This event occurs every four years. earlier reductions were triggered in 2012 and 2016.
In earlier halving, the price fell later, recovered in the months that followed, and finally reached new highs 10 or 11 months later.
The much anticipated halving increases the likelihood of market dumping upon activation. In this case, however, BTC may go up in the macro range of $ 11,500 and $ 12,400.
A chart shared by a crypto trader called “Galaxy” shows the possible price trend if it is not corrected after halving.
“The fact that BTC rises to $ 13,000 cannot be ignored.” he said the dealer as you explore the Bitcoin scenario as it breaks cleanly out of the $ 9,500 to $ 9,900 resistance area.
Bitcoin fractal if it is not corrected after halving. Source: Galaxy
This scenario, which Bitcoin will be presented on a short-term basis, would lead the dominant cryptocurrency to enter a completely new price cycle and secure a fresh start for a new multi-year rank.
Most technical indicators point to a decline
The likelihood of an extended Bitcoin rally immediately after halving without correction remains low.
Another crypto trader known as “Byzantine General” explained that practically all major technical indicators indicate that Bitcoin will suffer a withdrawal after a price increase of 150% since March.
“Signs of sales. Signs of sales everywhere. Currently flat, good preparation awaits.” he said the dealer.
Five key indicators point to a downward trend in Bitcoin. Source: Byzantine general
Other sell signals that could jeopardize Bitcoin’s recovery include resistance from the 2017 Relative Strength Index overheads and record sales in the over-the-counter market when BTC was at $ 9,400.. Both reinforce the argument for a crash after halving.
Although selling pressure in the crypto market outweighs buying demand, there is still a possibility of an increase after halving.. In the past, Bitcoin has shown that it can remain bullish despite obvious sell signals.
Do not stop reading: