As bitcoin halving approaches, investors expect Bitcoin to reach a new all-time high (ATH). Many in the cryptocurrency community expect Bitcoin to peak around $ 10.000 before the event takes place.
Having witnessed a jump in Bitcoin of around 15% last week, it was not difficult to convince investors to support this reasoning. But while we all understand how big and significant this month's reward halving event is, investors are not so sure what to expect after halving.
While much of the current upward trend is due to the impending halving, many are afraid that in post-halving there will be a huge sell-off of bitcoin, when speculators will come out of the closet to accumulate profits.
Current situation of Bitcoin
Bitcoin closed well last week after making over $ 1.000 in less than 24 hours. In two days, Bitcoin went from $ 7.700 to $ 9.400. The cryptocurrency community promptly pointed out that this is only the beginning.
Entering the new week, Bitcoin is expected to surpass its current high and reach highs of $ 10.000. This weekend, Bitcoin is looking to test resistance at $ 9.300 after climbing above $ 9.000.
Once the $ 9.300 threshold is crossed, bitcoin will easily break out of its recent high of $ 9.400 before finding stronger resistance at $ 9.800. The data suggest that the recent price hike is driven by U.S. investors buying bitcoins on exchanges and derivative exchanges.
This rush to buy has meant that there are now more "whales" swimming in the global sea of cryptocurrencies than in mid-2019. Additionally, bitcoin custody startups are reporting an increase in users during this period.
Hypothesis on the present and future dynamics of Bitcoin
Investors are well aware that a sell-off can happen quickly with Bitcoin, letting the cryptocurrency go free fall. This is making some investors nervous that those who buy right now are speculators only interested in raising profits when Bitcoin peaks in the coming weeks.
A major trader has gone so far as to suggest that Bitcoin will drop to $ 1.000 after halving. Eric Choe believes the sell-off will be so violent that the cryptocurrency in question will drop below $ 3.000 by the end of May.
Conversely, market leader Michael Novogratz speculates that Bitcoin will remain strong, assuming current buyers are continuing to keep their bitcoins safe even after this month's halving.
What do you think about it? Could Bitcoin really drop again after halving? Let us know in the comments below. We, for our part, will continue to exchange Bitcoins and other cryptocurrencies profitably with automatic trading software such as Bitcoin Pro. What is your favorite software?
