Bitcoin is a crypto currency or digital currency created and launched in January 2009. A pseudonymous person by the name of Satoshi Nakamoto created it. Unlike other normal currencies, it is created, distributed, traded, and stored with the use of a decentralized ledger system called the blockchain. Bitcoin prices are prone to volatile swings, making it 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 majority of the recovery is in linkage with upwards, trends in the S and P 500, and the global stock markets. A recent move from April 21 low of $6800 to $7800 seems to be triggered by factors other than moves in equities.
Bitcoin is yet to run out of price fluctuations, 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 of 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.
The assumption is that as the new supply of Bitcoin coming to the market reduces, it does highlight the scarcity of the assets that in turn cause price hikes. Bitcoin prices seem to have partially 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 which 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 therefore bodes well for Bitcoin’s price. Some observers are of the opinion that the bull markets seen earlier were the result of the halving.
History states we should expect an uplift in Bitcoin prices as we near halving in the coming weeks. We just witnessed an increase in the price of 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. Active data metrics count clusters of Bitcoin addresses, controlled by the same network entity. It shows the number of business individuals using the network.