Since its introduction in 2009, Bitcoin has come a long way and is now one of the hottest cryptocurrencies in the market. While its value fell after 2017’s peak, there were a lot of high expectations from the pioneer crypto in 2020. However, the Coronavirus pandemic took all markets by surprise and the same applied to cryptocurrency blog as well, at least it did for a little while. Bitcoin suffered the worst sell-off it has experienced in the last seven years on March 12th, 2020. It fell to a low of $3850, which wiped out $44 billion of its market value.
Therefore, it wasn’t surprising that the day was referred to as ‘Black Thursday’. However, smart money is now gearing up for a golden bull run after May 20th, 2020, which is an important phase; it is Bitcoin’s next block halving event. According to analysts’ predictions, this event could propel Bitcoin to achieve an all-time high of more than $20,000 per Bitcoin. Retail investors who have cryptocurrency retirement accounts also shared bullish predictions when it came to the original cryptocurrency. A survey was conducted by Bitcoin IRA in which almost 46% of the customers said that they expected Bitcoin to move past $8,000 in three months or less.
81% of the people who took the survey believed that it is the best time for purchasing Bitcoin. It took Bitcoin a 24-hour trading volume of worth $34 billion to go back up quickly. As of April 7th, Bitcoin monthly forecast was trading at a price of $7,357, which signals that the sell-off has done very little to change the trajectory of Bitcoin, even in the short-term. Bitcoin has already reached the first resistance point at $6,835, which confirms that it is in a renewed upward trend and the price has now become a supporting level going forward.
On its way up to $8,000, there may be some pullback at the Fibonacci levels of 23.6% and 38.2%. There will be some selling pressure at $7,402 and $7,821 and also at the psychological level of $8,000, which would come close to a retracement of 50%. Bitcoin will be able to get the buying pressure and liquidity it needs for continuing a recurrent historical pattern if people continue purchasing the coin at a discounted price. After every Bitcoin halving event, the coin has reached an all-time high. This has happened twice in the 11-year history of the coin.
In 2012, Bitcoin jumped from a price of $12 to $175 and in 2016, its price went from $652 to $3,190. After each of these halving event, there was a bull run, a bearish correction, and then a horizontal, long accumulation phase. There are two-fold reasons why new highs are caused by halving events. First, it has gotten ingrained into Bitcoin’s Monthly Forecast fundamentals, which means traders are more likely to enter long positions before the event. Secondly, it also happens due to the increasing security of Bitcoin and the effect on miner’s block rewards, which are halved as per the rules. Hence, less Bitcoin to sell when demand remains the same and so the price goes up.