Wednesday, October 28, 2020

Bitcoin likely to touch $6k before halvening next year

The Takeaway:

The third halving of bitcoin is scheduled in May next year. At the current pace, it is most likely the bitcoin will touch $6,000 before the next halving process. In the last 24 hours, Bitcoin has dropped by more than 13%. Some experts have predicted that the price might be heading towards $4,000.

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In late July bitcoin picked up the pace as many experts believed that the leading cryptocurrency would reach its all-time high in the coming days. But the price has remained stagnant and bearish for the most part, and in the last 24 hours, it has dropped by more than 13%. 

Bitcoin is currently in the second accumulation phase before its scheduled halvening in May next year. After each time BTC reaches a new all-time high, the price rapidly declines, and it enters a bear market, and after reaching the bottom, it starts to accumulate again. 

As bitcoin’s third halving approaches, all crypto analysts are speculating how the price of the cryptocurrency will behave. It is likely that price will slide further and may touch low $6000 before its scheduled halvening. The recent crash has signaled a bearish run for the bitcoin market. CEO of Euro Pacific Capital, Peter Schiff has predicted that if BTC might be heading to $4,000 or lower.

So far, Bitcoin has gone through the halving process two times, and both the times it followed the same pattern. The price reaches an all-time high, and then it enters a bear market which is followed by two accumulation periods before it goes through halving again. After the first-ever halving in November 2012, the price of Bitcoin surged and peaked to $270 before it entered the bear market, and the price declined by more than 80%. 

After the second halving in July 2016, the price once again reached an all-time high at $20,074 before entering a 51-week-long bear market. The current reward for mining each block is 12.5 BTC, and after the halving, it would be reduced to 6.25BTC. Unlike fiat currencies, bitcoin is limited, and there can only be 21 million BTC in existence. Reduced reward makes it challenging for miners to continue to add new coins to the blockchain, which results in few new coins, and they become more valuable. 

Let us know in comments where do you think the price of bitcoin is heading before the third halving next year?

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Ramon AnderSon
Ramon AnderSon
Ramon is a senior market research analyst who is very passionate about bitcoin. He has a degree in Applied Science from Assumption College, Worcester.

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