Could We See Bitcoin Break Its All-Time-High?
Today Bitcoin (BTC) had a 2.7% price increase and it managed to climb from $9,223 to a price of $9,507. This price increase essentially means that Bitcoin managed to break an important psychological resistance point and could keep climbing.
It seems plausible that Bitcoin might test $10,000 and possibly even surpass that goal within the next 24-48 hours. Bitcoin's trading volume is much lower than it previously this week with a volume of $48,191,140,414 as opposed to $70,931,651578. While a lower trading volume in conjunction with a price increase is usually a signal to sell, the halving is on the horizon.
Every 4 years or so, the block rewards for Bitcoin miners is cut in half until it will eventually reach 0 by 2040. In 4 days, on the 12th of May, mining rewards will be reduced from 12.5 to 6.25 BTC per block. This should reduce the available supply of Bitcoin which in turn should increase the price.
Historical Halvings & Patterns
Bitcoin went through 2 halvings so far with slightly different results in the short-term, but similar in the long run. Following Bitcoin's 2012 halving, BTC's price increased almost immediately from $12 to nearly $250 in 3 months. After some pull-back it reached a peak of $1000 for 1 BTC several months later.
During its second halving in 2016 Bitcoin was trading at roughly $8000 per coin. After the halving, BTC's price had a bit of a decline until a few months later where it rocketed to its all-time-high of $20,000.
Both patterns seemingly differed in the short term, a few months after a halving Bitcoin seems to reach brand new heights.
While it is nearly impossible to guess Bitcoin's price 3-4 months after the halving accurately, one could easily suspect that it will be much greater than $10,000.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado