Both cryptocurrency and Bitcoin (BTC) market watchers look forward to the upcoming 2020 halving. Other than higher price rally, they expect more significant developments.
Halving will be 2020’s highlight of Bitcoin as it will cut the crypto asset’s production by 50%. It is the event where miners will receive 50% fewer BTC to verify their transactions. It is generally scheduled to take place once every 210,000 blocks until a maximum of 21 million BTC supply are generated.
The next BTC halving is expected to take place by May 2020. The key events of the said halving involve hitting 630,000 blocks, 6.25 new Bitcoins as a block reward, and 1,312,500 total new BTC between events.
Before the BTC Halving
At the moment of BTC’s pre-halving rally, the bulls look forward to hitting $13,000 level.
According to seasoned analysts in crypto space, there is a big chance that Bitcoin could reach the price level of $13,000 before May 2020. Based on the previous price behavior of the BTC before the halving event, there will be a pre-programmed supply cut action that will occur, which will result in the possible price rally.
Analysts also noted that BTC is set to push the price from the high volatility zone. In case that the upward move successfully took BTC’s price to the pre-halving triangle zone, then it will hit the $13,000 level.
However, other crypto analysts fear that there might be a massive pullback that BTC may encounter. If this happens, the leading crypto asset by market valuation could slip under the $6,000 level. On the brighter side, the price dip will not hurt the crypto’s long-term bullish momentum.
After the BTC Halving
Bitcoin bulls are now preparing for the potential volatility and price gains that were witnessed in the previous halving events.
In this event, there will be winners and losers. That’s why BTC miners, traders, and other market participants try to weigh the next halving to ensure they will play on the edge.
Considering the past halvings, once the supply is cut while the demand remained constant, the price of BTC will rise. Many miners and traders noted that the halving by May 2020 would probably lead to greater trading volumes and volatility.
During the November 2012 and July 2016 halvings, the price of BTC rose by 80 times and 4 times, respectively. That’s why BTC market watchers are hoping for higher volatility this time around.
Furthermore, cryptoanalysis firm TradingShot.com said that those people who desire to exit their BTC positions have to extend their patience for about four months of waiting to gain better profits. But the good news is that they can hope for $13,000 BTC before the anticipated halving.
Overall, whether or not BTC could hit the $13,000 level before the 2020 halving, it’s good to note that the bulls continue to work harder than normal. So, they will probably achieve their expected BTC market performances before and after the halving.
By TCA PR