We are in the days after the third Bitcoin halvings. The most awaited event of the year finally arrived and now we are with the same feeling we experienced after the New Year’s party. It’s all over, silence is coming. What now? One becomes reflective. And one starts asking questions. Who am I? Where am I going? And things like that.
We went up, down and up again in a constant search. And now? With the halving behind us, we have to keep swimming in this sea of uncertainty, between doubts and optimism.
Now, let’s talk about the most read kryptonews of the week.
3 reasons for the „pre-halving fall“ in Bitcoin’s price from USD 10,000 to USD 8,100
I’ve always found it very curious that when the price of Bitcoin Champion, Bitcoin Revolution, Bitcoin Capital, Bitcoin Rush, Bitcoin Lifestyle rises sharply, many announce the fact as something logical and predictable, but when the price drops overnight, the event falls as a big surprise. It’s thought that Bitcoin’s rises are natural, but the falls aren’t. What’s going on with Bitcoin? everyone asks with a blank stare. One could assume that Bitcoin users are already used to its volatility, but it turns out that they are not.
The fall before halving today seems very far away, because the price managed to recover. And when Bitcoin goes up, the past tends to be forgotten. However, that fall was there and can be repeated.
It is clear that the resistance of the 10 thousand dollars per unit is very strong. When it breaks, we manage to maintain it for a few days. And when we can’t break it, the rejection is great. The optimism surrounding the halving was not enough to break this strong resistance.
And, of course, we have volatility because there’s a lot of indecision. Buyers who expect a lot from halving, and sellers who are somewhat skeptical of its short-term impact. And of course in this rough sea, whales do mischief.
Experts make predictions of Bitcoin’s price as halving approaches
Every time there is a consensus among analysts regarding the price of Bitcoin I tremble. Suddenly, it’s a superstition of mine, but sometimes I feel that Bitcoin enjoys disagreeing with the experts. Have you ever found an expert who is correct in his predictions? Watch out, I’m not anti-expert. I’m just very careful to think that everything is written down and that the future will be exactly as we imagine it. History doesn’t always repeat itself. And we forget that halving affects only supply, but the price rises mainly with demand.
What I do believe is that the liquidity released by central banks due to the coronavirus will have the power to inflate all markets. And, of course, this includes Bitcoin. So, halving the flow of new bitcoin and the liquidity on the street stimulates demand by creating the perfect conditions for the rise. In this case, Bitcoin would behave with a technology company and not like gold. The coronavirus crisis would not benefit Bitcoin as such, but the recovery would. That contradicts what many experts in this space maintain, but I consider this scenario, although very unpopular among bitcoiners, to be likely.