Bitcoin Price Back to $8,000 By Mid-2020 Amid Block Reward Reduction Using RSI Trading Metric
As Bitcoin (BTC) continues to expand and become closer to a block reward halving, analysts are becoming more bullish about the price of this digital asset. There is an analyst called PlanB that the Relative Strength Index (RSI) is starting to move positively.
Bitcoin Could Reach $8,000 By Mid-2020
The most popular digital asset, Bitcoin, could start to recover part of the price that it lost during the last months. As soon as in May 2020, Bitcoin’s network is going to experience a block reward reduction that will be giving miners 6.25 BTC rather than 12.5 BTC as now. This will be reducing the new issuance of Bitcoin, reducing its inflation and allowing it to reach new highs if there is an increased demand for the asset.
According to PlanB, the RSI indicator has been close to 70 when Bitcoin halved. We are 14 months away from that moment, and things could clearly change.
— PlanB (@100trillionUSD) March 10, 2019
As he mentioned, this implies that Bitcoin will steadily move towards $8,000 – $10,000 to reach RSI 70 during the halving event. He said that he derive RIS from projected price, and goal seeked BTC to get RSI 70 in May 2020.
There is another Bitcoin and crypto analyst and trader, Flib Flib, that mentioned that Bitcoin could reach $7,000 by the time Bitcoin will be halving. PlanB has also stated that it might be difficult for Bitcoin to fall under $2,000 due to different reasons, including historical trends and fundamentals.
Back in November 2015, Bitcoin’s price dropped substantially. Indeed, it fell from $6,300 down to $3,200 at the beginning of December 2018. Because of this, the hash rate of the Bitcoin network dropped more than 50% since its all-time high in August 2018. This could signal that the market bottomed and started to grow once again.
There are many other individuals that are making different predictions about Bitcoin and digital assets. One thing is clear, Bitcoin has been in a bear trend for over a year, and investors are waiting for a new bull market in the space.