Historical Bitcoin Price Inflection Point Suggests This Could Be One of the Last Chances to “Buy the Dip”
The most popular digital asset seems to be close to reaching a new inflection point. Bitcoin (BTC) is going to be halving as soon as in May 2020. That means that the time to accumulate as many Bitcoins before a price surge could be ending in the near future.
We Are Close To An Inflection Point
Bitcoin is going to experience a new halving next year. Bitcoin rewards for miners will fall from 12.5 BTC per block to 6.25 BTC. The same is going to happen to Litecoin (LTC), the fifth largest digital asset in the market. Rewards for this cryptocurrency are going to fall from 25 LTC to 12.5 LTC.
With this halving and increased demand for Bitcoin, the price of the digital asset is expected to grow stronger in the near future. In a recent tweet released by Pantera Capital, they shared a graphic with Bitcoin inflection points, Bitcoin price and an upward trend related to Bitcoin’s future price.
We have seen a couple of these cycles where the tide begins to shift roughly a year before block reward halving dates. Inflection points occurred 376 and 320 days prior to the 2012 and 2016 “halvings”, respectively. Next halving is expected May 24, 2020https://t.co/rLUh849Qt9 pic.twitter.com/IXre5X85fS
— Pantera Capital (@PanteraCapital) March 28, 2019
It is possible to see in the chart shared by the firm that inflection points mark these moments in which the market stops falling and enter a new bull trend. Each of the previous two bull trends ended up in new all-time highs for Bitcoin and other digital assets.
Back in December 2017, Bitcoin reached an all-time high of $20,000 and it dropped down to $3,200, an 80% decrease in a year. Now, individuals and enthusiasts are waiting for Bitcoin to start growing once again and reach new highs in 2020 or 2021.
Pantera Capital explains that inflection points occurred 376 and 320 before previous halvings. That means that the next inflection point is expected to happen in the near future. Although past price action does not predict future movements, there are some similarities between these moments.
The first and second halvings show that Bitcoin price was positively affected the months and years after they took place. During the first halving, Bitcoin moved from $10 to more than $1100 in just a year. The second one has driven the price of Bitcoin from $550 to $20,000.
In the last months, Bitcoin has been traded between $3,200 and $4,200. It is important to see how Bitcoin will behave in the future and how it will evolve after a new halving. However, just like a respected crypto twitter trading analyst said, don't take advice from those who were suggesting to buy bitcoin at $6,000 BTC/USD only to see it fall into the mid $3 thousand dollar range either. It is truly a bull vs bear showdown happening, which side do you see taking control of the crypto market in the coming weeks, months and rest of 2019?