Why the average price of Bitcoin paints a bullish picture

Bitcoin (BTC) has grown relentlessly in the first decade since its Genesis block. But now the price could enter a phase where new price movements are uncertain. However, the average price paints a bullish picture.

Bitcoin: Average price with a bullish direction

A look at Bitcoin’s average prices paints a bullish picture throughout the year. Bitcoin prices have moved through several waves or “epochs”, each with a very different pricing mechanism.

But the overall direction goes up if you take the average into account. Bitcoin prices show the ability to hit new highs over the years, fueled by different levels of introduction and trading. Twitter analyst Digitalik.net has created an… analysis and explained it based on reward periods.

Price analysis (min, max and average) per reward era.#bitcoin pic.twitter.com/XmZhb5qzPm

— digitalik.net (@digitalikNet) December 25, 2019

A reward era was counted as the period in which the block reward is set to a certain level – for a period of about four years, based on the relative block time. The current era with a block reward of 12.5 BTC also had the highest average price as it contained both high base prices and the absolute top for bitcoin prices above $ 19,600 and in some markets even up to $ 20,000.

This era has not ended and the price average has not yet been fixed. Overall, however, the trend shows long-term upside potential. The next halving will bring a new recalculation, starting with a new record of prices.

What the time after halving brings

Looking at the four-year reward periods also looks bullish, as short-term fluctuations and anomalies may be left out. The next bitcoin era also comes with new pricing mechanisms, the futures and options markets.

Bitcoin halving is traditionally followed by a bull run, as you can easily see in retrospect.

Bitcoin halving: 18 months to go ..

[ The halving is the 50 percent reduction in block rewards on the Bitcoin blockchain ]

A look at Bitcoin’s chart shows that both halvings have been followed by significant bull runs.$btc #btc

— The Crypto Geek⚡️ (@CryptoTiburon) November 9, 2018

Therefore, the new era could push the average price of Bitcoin from the currently relatively high baseline above $ 7,000 to a temporary high. There is no certainty when the rally will take place – but the reward era is four years long and can allow for a relatively long time to re-price.

Earlier halving shows that the average price can only be reached after considerable fluctuations – including deep price drops:

🔥Are you ready for #Bitcoin Journey?🔥

The #BTC halving is getting closer! We are only 207 days away from the next $BTC halving

BTC bottomed around 200 days before it's halving date in 2012 & 2016

Fasten Your Seatbelt- 2020 & 2021 will be glorious years for #crypto community! pic.twitter.com/LpbnN8Qj4r

— Crypto Engineering ⚡ (@cryptoengineers) October 20, 2019

However, the overall direction remains bullish, and BTC remains within the channels that predict potential gains in higher areas.