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Bitcoin Halving Could Produce Big Bear Market: Bloomberg

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Wed, 12/18/2019 - 15:57
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  • No, the Bitcoin price is not going to magically go through the roof on May 14, 2020, according to Bloomberg

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Contents

The level of skepticism around the upcoming Bitcoin halvening continues to grow. In today's newsletter, Bloomberg predicted that the highly-anticipated miner reward cut could actually lead to the advent of a "big bear market" that will make even the most ferocious bulls take back their words. 

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Buy the rumor, sell the news 

"Buy the rumor, sell the news" is a popular strategy in various financial markets. It is based on the premise that traders tend to sell an asset when a certain major event finally takes place but doesn't produce a significant impact on the price. Case in point: the launch of Bakkt's physically-settled futures. It is widely considered to be the main reason behind the massive Bitcoin price drop in late September. 

Bloomberg predicts that the same scenario will take place on May 14, 2020, the "magical" day when the block reward will be reduced to 6.25 BTC. If the Bitcoin price fails to budge right after the halvening, this could lead to disillusionment for many crypto advocates. 

"If a key bull plank is refuted, it's easy to see that leading to sadness and selling."

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Bulls need more patience 

Bitcoin's price history shows that its two previous halvings weren't immediately bullish. It took BTC four months to reach a new all-time high of $32 after its first reward cut that took place on Nov. 28, 2012. 

The second halvening happened on July 9, 2020, and turned out to be short-term bearish. The price of BTC immediately plunged from $660 to $627, but it didn't stop to bleed there -- the crypto king plunged to the $460 level at the beginning of August. 

It wasn't until October that bulls finally gained the upper hand and commended one of Bitcoin's biggest price rallies ever.   

As reported by U.Today, trading vet Peter Brandt predicted that Bitcoin would bottom at $5,500 in July 2020. 

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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COVID-19 Crisis Ruins Bitcoin's Q1, but Bulls Could Soon Have Massive Comeback

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Tue, 03/31/2020 - 19:25
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  • Bitcoin (BTC) have high hopes for Q2 after the coronavirus-induced crisis tanked the price of the leading cryptocurrency

Cover image via stock.adobe.com
Contents

Bitcoin, the number one cryptocurrency by market capitalization, is set to finish its tumultuous first quarter of 2020 in the red with a 10.65 percent drop, according to crypto data provided by Skew.    

As reported by U.Today, it suffered a price crash of enormous magnitude due to the coronavirus pandemic that resulted in the global economic shock. 

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The stellar quarter that wasn't 

In early 2020, Bitcoin was on track to have its best Q1 since 2013. In fact, it gained more than 50 percent after reaching its current yearly high of $10,508 on Feb. 13. However, this rally hit a snag and BTC printed its first negative February close in six years

All bull dreams have been brutally shattered after the 'Black Thursday' of May 12. On top of halving its price in less than one day, BTC was actually in great danger of hitting zero because of a string of liquidations on BitMEX. 

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The odds are in the bulls' favor  

That said, there is still a good chance that the bulls can stage an impressive comeback in Q2, which is historically the most successful quarter for the leading cryptocurrency.

Last year, BTC kicked off its impressive rally on Apr. 2 with a sudden 20 percent price pump.   

At press time, BTC is sitting at $6,480, continuing its streak of range-bound price action.  

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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