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Analyst: Bitcoin on track for massive post-halving bull run despite current bearishness

Bitcoin has been caught in the throes of a volatile trading session over the past several weeks, which has resulted in it erasing virtually all of the gains that were incurred during the late-October pump and has opened the gates to potentially further near-term losses.

Analyst: Bitcoin on track for massive post-halving bull run despite current bearishness

Cover art/illustration via CryptoSlate

Bitcoin has been caught in the throes of a volatile trading session over the past several weeks, which has resulted in it erasing virtually all of the gains that were incurred during the late-October pump and has opened the gates to potentially further near-term losses.

In spite of this short-term bearishness, analysts and investors alike widely anticipate Bitcoinโ€™s upcoming mining rewards halving โ€” which is slated to occur in May of 2020 โ€” to catalyze a massive bullish movement similar to ones seen in years past.

Bitcoinโ€™s near-term bearishness overshadowed by the potentially bullish halving event

At the time of writing, Bitcoin is trading up over 2 percent at its current price of $7,400, which marks a decent climb from its recent lows of $6,700 that was set during the latest sell-off.

BTCโ€™s ability to find strong buying pressure in the upper-$6,000 region signals that this is a robust support level that could bolster the cryptocurrencyโ€™s near-term price action, but it is imperative to note that it is still caught within a firm downtrend that wonโ€™t be invalidated without a massive upwards movement.

Looming over this near-term bearishness, however, is Bitcoinโ€™s upcoming halving event, which may help provide the cryptocurrency with some much-needed upwards momentum that negates the lackluster price action it has been facing in recent times.

Jonny Moe, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, telling his followers that Bitcoin is still โ€œright on trackโ€ to incur a price rally following the halving event.

Bitcoin BTC
Image Courtesy of JonnyMoeTrades

This tweet was in reference to a previous one in which he noted that a fresh all-time-high for BTC likely wonโ€™t come about until after the event takes place, which leads him to believe that it will consolidate for the rest of 2019 before beginning its ascent next year.

โ€œIf we follow the last 2 halvings, we won’t set a new ATH until AFTER the halving, projected for May 2020. With that in mind, I’m looking for us to consolidate thru the rest of this year, and begin making a run at $20k next year,โ€ Moe explained.

Buyers beware: prominent analyst claims halving might disappoint investors

Although Moe believes that the halving will catalyze some bullishness for BTC in the near-term, another prominent analyst is warning investors to not get too excited about it, as Bitcoinโ€™s bearish price action going into this event is anomalous and could spell trouble for where it goes next.

Willy Woo, an analyst who focuses primarily on on-chain analytics, mused this possibility in a tweet, saying:

โ€œNEVER gone into a halvening in BEARISH price action, miners already capitulating adding sell volume. Historically we front run with a BULLISH setup, miner capitulating only after halvening when revenues are slashed. This is a unique setup. Quite bearish leading up to the event.โ€

Only time will tell as to whether or not 2020 will be the year that Bitcoin sees fresh all-time-highs, but it is highly probable that the halving will play a role in its price action โ€” for better or worse.