Finally, the much awaited Bitcoin Halving occurred today May 11, in the 630,000 block of its chain, in order to reduce the supply of coins and mining reward in half. Just a few hours after having held the reduction event, the price of Bitcoin remains locked in a small consolidation. Where will it come from? Let’s see it below.
Bitcoin’s fundamentals have improved since its previous Halving
The most supported view in the crypto ecosystem is without a doubt that of an increase in the price of Bitcoin as the supply is reduced.
After a few months after celebrating the previous 2 Halving, you can see what many expect. And although the past does not ensure what may happen in the future, it can show the reaction of market participants to the drastic reduction in the block reward.
The most important thing is to take into account the development of the project. In its short life, Bitcoin has given a lot to talk about. There are excellent fundamentals behind its price increase, and this is what really values an asset.
It is impressive to see how since the previous Halving, some data has increased exponentially, such as the hash rate of your Blockchain, the number of addresses, the volume of transactions, new Bitcoin whales. These are just some of them, demonstrating with good foundations the advancement and adoption of this technology.
How did Bitcoin’s price react after its Halving? Now what’s next?
Given the unpredictability of the event, many traders are on the lookout for any reaction. Therefore, it is quite likely to see volatility in the coming hours.
Currently, Bitcoin’s price is $ 8,589, consolidating in a small range with resistance at $ 8,930 and support at $ 8,450. A break at either end will cause a volatile leak.
As we have seen, generally it does not happen much with the price of Bitcoin immediately held its Halving and, despite the fact that we do not have only two previous samples, on both occasions the price increased after a period of volatility in the short term. The shortage is for the majority the main cause of this reaction.
From the time frame with weekly candles, the scenario is quite positive. A strong engulfing candle was able to break through the EMA of 8 and SMA of 18 still bearish, but getting closer to a bullish cross, indicating a trend change for the medium term.
What we see today as a fall, could be nothing more than a setback for the continuation of the previous bullish sentiment.
The 200-week SMA is currently bullish and rejected during the steep decline in March.
The daily candle chart also shows positivity, despite the sharp drop that occurred yesterday.
The 200-day moving average is still bullish. The EMA of 8 and SMA of 18 also remain bullish.
Currently, the price rejects support at $ 8,450. If you do not respect it, strong sales could start. However, from this time frame, purchases are still the most likely positions in favor.
Temporality of 4 hours
In the 4-hour time frame it is where we easily observe the consolidation that the price is currently going through and, as I mentioned, if any of its extremes is violated, a strong movement will be witnessed.
From this chart, sales are the positions with the most signals in their favor, thanks to a well-marked bearish structure, supported by EMA of 8 and SMA of 18 crossed to the downside. In spite of this, it is quite risky to bet on sales, observing the predominant force in higher periods.
The SMA of 200 in this time frame is still bullish.
What you think? Will the price of Bitcoin react upwards for its Halving? Let us know your opinion from the comments!
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