Your favorite crypto news blog

For First Time Ever, Bitcoin Set to go Into 2020 Halving in Bearish Action

Bitcoin 2019/11/19 05:00 by Martin Young

As bitcoin prices slide even further this week analysts have been looking at the bigger picture which is growing increasingly bearish. Previous approaches to BTC halving have been bullish but the opposite appears to be developing this time around, at least according to one analyst.

BTC Slides Further

Bitcoin is in danger of falling back below $8,000 again as it takes another beating by the bears. A few hours ago prices broke down again in a plunge from $8,450 to wick down to $8,000 before the slight recovery.


BTC price 1 hour chart – tradingview.com

The price bounced back a little to settle just below $8,200 but it marks a loss of over 4% since the weekend. The down trend is clearly intensifying as Chinese FOMO fades out. Analysts are largely bearish as most are eyeing further losses in another fall to support around $8k.

A Bearish Bitcoin Halving?

There are still six months to go before the Bitcoin halving but this could be the first one that has a bearish run up. Industry analyst Willy Woo has looked at the longer time frame charts and noticed that historical halvings have always been bullish leading up to the event.

“NEVER 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.”

He added that as price drops the weaker miners will close down their rigs as was the case during the 2018 capitulation down to $3k. This year prices have dumped from just below $14k down to $7.5k which is having the same effect on the miners.

Woo added that this adds to the already bearish sentiment and doesn’t expect a huge pump before the halving in May next year.

“I expect way more volatility. Short term bearish is all I’m saying. And don’t expect price will repeat past halvenings.”

Someone else rightly noted that there has only been two other Bitcoin halvings so there isn’t a great deal of data to go on. Another point was made that this halving will be the first when BTC futures contracts are added to the mix which could intensify the bearish sentiment.

Thirdly a massive global recession appears to be looming for 2020 which would also put pressure on the likelihood of a massive bull run. There may be no major bull run for a couple of years.

Others, such as the ‘Crypto Dog’ were bullish noting that there is also a lot of competition between miners;

“$BTC miners are incentivized to keep price low to squeeze out smaller operations. The halving will catalyze a massive run, but who will be left standing when it finally comes?”

The next few months could see a lot of chop for Bitcoin and those expecting a huge pre-halving pump may be disappointed if the above turns out to be accurate.

Image from Shutterstock

The post For First Time Ever, Bitcoin Set to go Into 2020 Halving in Bearish Action appeared first on NewsBTC.

0 Like(s)

You should also read...

Bitcoin 03/12/19 10:27 by Brenda Ngari
Why Are Bitcoin Holders Bullish About The Long Haul?
It’s another chilly day on the crypto market as pressure continues to mount. Bitcoin is currently floundering below $7,400 as the bears threaten to take over. In December 2018, the crypto winter se...
Read More
Mining 01/04/20 11:21 by Brenda Ngari
Upcoming Bitcoin SV And Bitcoin Cash Halvings Will Spark Mass Miners Exodus To The BTC Network
The current global economic conditions are not favorable, even for cryptocurrency miners. As per Coin Metrics, a significant number of bitcoin (BTC) miners have capitulated as a result of the excruci...
Read More
Mining 23/04/20 14:00 by Yashu Gola
Bitcoin Halving Could Prompt Miners to Force-Sell, Analyst Fears
The upcoming bitcoin halving event could prompt a new wave of panic-selling by miners, says a pseudonymous analyst. Some traders may manipulate bitcoin to bootstrap a bullish narrative. Popular bullis...
Read More
Bitcoin 12/05/20 23:00 by Tony Spilotro
Financial Analysts Are Divided On What to Expect From The Bitcoin Halving
Last night, the countdown on the Bitcoin halving reached zero, and the block reward miners receive was cut in half. The event has widely been expected to be bullish, with valuation models suggesting t...
Read More
Mining 05/06/20 19:30 by Tony Spilotro
Bitcoin Miners Are Dumping BTC At a Faster Rate Post Halving, But Why?
Bitcoin’s halving is nearly a full month behind us, yet no new uptrend or post-halving selloff has happened. Oddly, Bitcoin price has traded relatively sideways since. One metric that has change...
Read More