The Bitcoin is a crypto currency or a digital currency created and launched in January 2009. A pseudonymous person by the name of Satoshi Nakamoto created it. Unlike other normal currencies, it created, distributed, traded, and stored with the use of a decentralized ledger system called the block chain. Bitcoin price is prone to volatile swings making it as the most popular crypto currency for traders to speculate on.
Recently, the Bitcoin market value rose to $7800 trading, 100% higher than it was on March 12 dubbed “Black Thursday". This is when the prices fell from $7950 to $4,700 as the Covid-19 virus diminished most markets. Currently, the Bitcoin price plays at $7700 on the low of $3867 recorded on 13 March. The major part of the recovery is in linkage with the upward, trend in the S and P 500, and the global stock markets. A recent move from 21 April low of $6800 to $7800 seems to be triggered by factors than moves in equities.
However, the Bitcoin is yet to be out of the price fluctuation, as it still needs to break out of its latest formed rising wedge pattern. If it can defy conventions and break to the upside, it would indicate a staggering strength in the short-run. This potentially causes the continuation towards the $8830 level of resistance. The upper side o f the wedge is at $7650 with a breakout and registered if any daily candles close above that point. From a majuscule point, Bitcoin needs to take out its diagonal price trend dating back to December 2017. A clear level of resistance slopes down to $9300, that will become a key target during the next few weeks as positive energy around the halving continues to build.
An assumption is, as new supply of Bitcoin coming to the market reduces, it does highlight the scarcity of the asset that in turn causes price hike. Bitcoin price seems to have partlially halved from the equity markets due to the history surrounding the coming halving. The largest crypto currency will undergo the process of halving on 12 May, after when the reward per block mined will drop to 6.25 BTC from the current 12.50 BTC. A popular rumor going around, states that halving creates a deficit, and thefore, bodes well for Bitcoin’s price. Some observers are of the opinion that bull markets seen earlier were the results of the halving.
History states, we should expect uplift in the Bitcoin’s price as we near to the halving in the coming weeks. We just witnessed an increasing price of the Bitcoin in the previous halving. Previous data shows that the digital currency tends to hit a new market cycle top in the calendar year of halving. If the history of the previous data patterns repeats, we could witness a rise of the Bitcoin price levels above $13800 before the third halving. The active data metric count clusters of the Bitcoin addresses, controlled by the same network entity. It shows the number of business individuals using the network.