- Bitcoin is doing all the things that bearish analysts have been warning, says “Too much time under here could generate panic selling”
- After the Bitcoin halving, the rise in 2016-2017 was slow because of altcoins and ICO but PlanB says this won't be the case in 2020
After making a recovering from the drop of $6,500, on Nov. 30, Bitcoin started sliding down from $5,800. Today, BTC/USD went to a $7,087 level and is currently trading at $7,195 with 24 hours loss of 1.05%, as per Coincodex.
Trading volume meanwhile is extremely low at just about $235 million, though slightly higher than yesterday’s $190 million. Even at CME Bitcoin futures, it was a “very slow day” reported Skew. While not that slow, Bakkt has been seeing a constant decrease in volume from its all-time high of 5671 BTC on Nov. 27.
Analysts like Magic Poop Cannon are extremely bearish and expect BTC to drop to $1,000 level. In his latest update, Magic said the Bitcoin price chart is doing all the things that he has been warning about that if extended could generate “panic selling” among the investors.
“BTC is currently dipping below the head and shoulders neckline, the 50 week MA, and the 61.8% retrace – all things I've been warning about. Too much time under here could generate panic selling,” Magic wrote.
However, interestingly the number of HODLers in the Bitcoin market is only increasing with less than 6.8 million BTC having changed hands in the last 12 months.
Bitcoin investors seem to be just stacking sats and then hodling them.
But those planning to stack these sats, Bobby Lee, the co-founder and former CEO of China's first crypto exchange BTCC says keep on waiting for the dip and when it comes during price correction, they get scared.
A common problem shared by most people when it comes to investing in Bitcoin:
They complain about high prices & are afraid to buy now, so they want to wait and then buy when prices dip.
And then when prices do come down during a correction, they get scared & lose confidence.🤪
— Bobby Lee – Ballet: Simple & Elegant Wallet (@bobbyclee) December 3, 2019
Bitcoin Halving – 5 Months to Go
The price might be not showing any momentum yet but the reward halving event is now just about five months away.
According to the stock-to-flow model of PlanB, the chart depicts the halving when blue turns to red and “the market immediately rises after a halving.”
However, unlike 2016-2017 when the rise was slower, which analyst PlanB said was because altcoins and ICOs were stealing some of Bitcoin’s thunder, this is not going to happen in 2020 “for sure.”
This third reward halving on May 14, 2020, will cut down the block mining reward from 12.5 BTC to 6.25 coins and bring down its inflation from 3.70% to 1.80%.
And this is expected to act as a catalyst for BTC price like it did the last two times and push the digital asset to another all-time high.
While some are skeptics if this time the halving would have the same effect on the price as the last two times, Alistair Milne is pretty confident in Bitcoin as he said,
“Please tell me again how ~$45million / week of unsatisfied demand won't move the price when Bitcoin's halving occurs.”