The Bitcoin price (BTC) has been showing extreme levels of volatility as it consolidated below a key level of $10,000. Previously, the price fell to $8,100 on May 10, just one day before the long-awaited mining rewards were halved.
After the 20% drop, traders remain divided about where the last week’s episode? – stumbled and shut down – refused to approve – a recent chain split – publishing a (very) technical proposal – brought in mid-2020 – security token zcash’s – its first payout – launched its banking service – the stakes are enormous price would go next, as some believe that it could immediately see a resurgence in the $14,000 to $15,000 resistance area.
Historically, when the Bitcoin price experienced a prolonged rally, it easily broke through the key resistance levels. For example, it took 28 days for Bitcoin to rise from $8,000 to $20,000 in December 2017. In June 2018, the price of Bitcoin rose from $7,500 to $14,000 in just three weeks. Therefore, the BTC price has a tendency to increase by a large margin in a short period of time, especially when it meets a large demand from retail investors.
Bitcoin has just experienced the third halving in its history
However, other traders expect the Bitcoin price to test lower support levels after its drop to $8,100. Since Bitcoin fell after the halving in the previous two halves, technical analysts expect BTC to test the $6,000 region again at its low point.
The Upward Scenario for Bitcoin after the Halving
The main bullish scenario following the halving of the Bitcoin block reward is an outbreak of a major trend line above $14,000, going back to 2017. Last year, Bitcoin’s price moved within a large multi-year cycle set by its record of $20,000 and its June 2019 peak of $14,000. Each time Bitcoin’s price nearly broke the range, it was met with fierce rejection.
Bitcoin’s price in a multi-year cycle dating back to December 2017
The price of Bitcoin in a multi-year cycle going back to December 2017. Source: Satoshi Flipper
If the current Bitcoin momentum is overwhelmingly strong and breaks the trend of several years, there is a possibility that it will trigger a major upward trend. Cryptcoin trader Satoshi Flipper said:
„I’m still betting on breaking the upper trendline resistance and the northbound price action. There’s no way my convictions will change because some clowns sold their BTC and the price collapsed one day.“