- After Bitcoin recorded a strong price increase last week, BTC is currently trying to find a new support level from which BTC can target the $10,000 mark.
- Cardano, Litecoin and other Altcoins are also showing high volatility and have suffered large losses in the last 24 hours.
The price of Bitcoin is in the process of finding a new support level since it rose to $9,400 on April 30, 2020 and has fallen by 3.87% in the last 24 hours, to a current price of $8,700.60. The volatility is also still high, so that Bitcoin broke through the USD 9,000 mark several times in the last 3 days, but was never able to hold it. The market capitalization has fallen from $164 billion to$159 billion at the time of writing.
The experienced Bitcoin trader “Big Chonis Trading” describes that Bitcoin has fallen below the $8,900 mark and could therefore follow a sideways movement for the time being. However, he also states that the price could continue to rise due to the imminent halving, as other investors might be afraid of missing out (FOMO = Fear of missing out).
The well-known cryptanalyst and inventor of the stock-to-flow model for Bitcoin, “PlanB” describes that Bitcoin tended to fluctuate in price in the past halving, and that the volatility was particularly high in the first one to two months after the halving due to sell-offs. PlanB is discussing with its community whether history will repeat itself or whether dumping will not occur this year.
For those who is going through the their first #Bitcoin halving, congratulations, you made it 🙂
Historically, #BTC price tends to dump in the first 1-2 months post halving.
History repeats itself?
— Theta Seek (@thetaseek) May 3, 2020
Crypto trader Byzantine General shared a chart with his community and pointed out that Bitcoin has found a new support level for the moment along the month opening price at $8,600 mark. Ethereum has already fallen below the last support level, so the former support can now be seen as new resistance.
Will BTC follow? 😬 pic.twitter.com/0kAi9CeVaM
— Byzantine General (@ByzGeneral) May 4, 2020
David Grider, senior digital strategist at Wall Street analysis firm Fundstrat Global Advisors, says the Bitcoin price is likely to rise after the halving. He and his colleagues give a bullish outlook for the next 12 months:
We are optimistic about the next 12 months and expect prices to rise up to [havling]and possibly beyond.
Bitcoin Trader HornHairs is also bullish for Bitcoin, as he believes that there are many factors in favor of another bull run. Long positions on the BitMEX derivatives exchange continue to predominate. Bitcoin is also trading above the annual volume-weighted average price and above the 200-day moving average. The Ichimoku cloud on the 1-day chart also paints a bullish picture.
-Mex funding+premium index still negative
-Above the yearly vwap
-Above the 200 DMA
-Bullish 1D cloud
-Halving in 10 days
You might not call and short THE top but you’ll save yourself a lot of potential headaches by just waiting for a break in 1D market structure.
— HornHairs 🌊 (@CryptoHornHairs) May 2, 2020
The Altcoin market currently shows a similar development to Bitcoin, so that the Litecoin price has fallen by 7,04 % to a price of $46,06. Cardano (- 7.86 %), Tezos (- 7.36 %) and Stellar Lumens (- 8.10 %) show a similar development. You can find the current live price data of more than 5,000 cryptocurrencies in our price overview.
FOMO: Opportunity or risk for the Bitcoin price?
The Bitcoin halving will take place in about 8 days and some investors who have been following the events from the sidelines so far may soon enter the market and buy Bitcoin to take advantage of any hype that may still be coming. As Crypto News Flash has already reported, opinions differ widely. However, a new study by Binance concludes that the halving is already priced in:
(…) the Bitcoin halving event of 2020 can’t be compared to the previous halving events, due to several factors, such as increasing market maturity and better halving anticipation in the crypto community, as well as the possibility that the impact of halving is already priced into the current BTC prices.