Halving, the long-awaited bitcoin event that will reduce the block reward by 50 percent and is expected to give us a new boom in the market. Will it really be like that?
If history repeats itself, this event will be the catalyst for another great price increase, which will bring BTC to USD 20,000 again, followed by a new ATH.
Bitcoin in the accumulation phase
Some analysts believe that BTC is now entering the accumulation phase that will precede halving and may help accumulate fuel for the new bull market.
The above sounds soothing, especially after yesterday. Bitcoin has fallen in the last month. The price of the digital asset fell even under $6.600 on some crypto exchanges yesterday.
The current downward trend (it is difficult to answer the question whether it is still ongoing) may also prove to be an ideal opportunity for long-term investors to accumulate as many cryptocurrencies as possible in anticipation of increases that will occur in some time as a result of the block reward halving in the bitcoin network.
Alistair Milne, a well-known cryptocurrency investor, explained in a recent tweet what he thinks about the current situation:
Things I expect to happen over the next 4-5 months due to the impending Bitcoin halving:
– BTC shorts close out
– People re-accumulate BTC if they had sold
– Miners start to hoard (e.g. borrow USD against assets)
– Under performing altcoins sold for BTC
– Bulls lever up
— Alistair Milne (@alistairmilne) December 16, 2019
What’s next with the price?
It looks like Bitcoin will end 2019 in a down-trend. Within a few weeks, however, we will probably see if the cryptocurrency market regains its impetus and see intense green again on the crypto exchanges. Meanwhile, the bitcoin going to zero narratives is back again, the smart money seems to be in accumulation since bitcoin broke down the $7,000 psychological level and not a significant drop is observed from this level.
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