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Bitcoin [BTC] Price Analysis: BTC crashes 12% but price could surge back to $10,500 after halving


Expectedly, price doesn’t move in straight lines. Rallies can be perpendicular in their projection while dumps can be perfect falls.

And this is evident in the current Bitcoin price trajectories. Prices, a day before halving, has been waving all over the place as investors and traders anticipate a correction higher in expectation of an emissions shock.

A vocal Bitcoin supporter now says the ability of a trader to keep calm in the face of a pullback and instead stack Sats is the ultimate achievement of Bitcoin Zen equilibrium.

“From 2011 to 2016 I loved seeing Bitcoin hit new highs. From 2017 to 2020 I love seeing the big pullbacks to stack more Sats. When you start loving the pullbacks more than the tops, you’ve achieved a desirable BTC Zen state of equilibrium.”

It could be far reaching, consequential to miners and the wider community but lucrative for those willing to hold. This is not only guided by past post-halving events but political turbulence expected in the course of the year.

In the next few hours, Bitcoin will halve its miner rewards as the coin’s inflation drops to around gold’s. These two are now contending to be safe haven options, scarce assets which can be used to store value even if there is an economic fallout.

However, the only difference and perhaps an edge over gold, is BTC’s advantages like being digital, but the development of derivatives products or financial products that extends BTC’s pure “electronic cash” capabilities.

With the development of complex DeFi products, holding Bitcoin will yield interest and hence extra capital flows unlike gold which is non-bearing. Pound-to-pound, this is an advantage over competing, traditional assets backed by the incumbent.

BTC/USD Price Analysis

Week-to-date, despite the stellar gains of the last few days, BTC price is down two percent but reversing sharp losses of May 10.

The flash crash to around $8,100 was wrenching enough and shook out some traders who were overleveraged but interestingly, price found support at the 20-day moving average, or the middle BB.

As highlighted before, our immediate support was the $8,500 level and the middle BB, and technically, in light of what lies ahead, ever low should be a buying opportunity with stop losses at the $8,000 mark or May 10 lows.

Further dips below this could spur further losses, effectively recouping pre-halving gains potentially towards the $6,500 level.

Disclaimer: This is not investment advice. Opinions expressed here are those of the author and not the view of the publication.

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