Bitcoin reappears as a "golden cross", is it hard to see Bitcoin below $ 10,000 anymore?
Bitcoin's recent cross-gold trend on the daily chart, which Bitcoin has seen in its last halving, may have fuelled enthusiasm for this leading cryptocurrency to reach a tipping point. With the upcoming halving, many investors are buying under $ 10,000 in preparation for a supply-side shock.
Golden cross lets traders see the prospect of green candles
After May, when the upcoming Bitcoin halving occurs, the inflation rate of this leading cryptocurrency will be 1.8%, which is lower than the inflation rate of gold and the US dollar. This will only increase the value storage of the asset, because Bitcoin does store value better than other hedging assets.
The halving means that the miners receive half of the predetermined block rewards they currently receive to verify transactions in the Bitcoin network. The halving technology designed by Satoshi can reduce the supply of existing bitcoin, thereby increasing prices, guiding new users and establishing a positive feedback loop, thereby increasing bitcoin adoption. Bitcoin halving occurs every 210,000 blocks or approximately every 4 years.
Just before the last halving, we saw a similar gold cross-chart formation on the BTC / USD chart. With the price of Bitcoin rising by 218%, Bitcoin hit a record high. Traders have not forgotten this lesson and seem to position themselves in expectations.
As of this writing, bitcoin is trading at around $ 10,100, after falling to $ 9,480 over the weekend. As confirmed by today's gold cross chart, we are seeing an increase in long trading volume pushing prices back to the psychologically important $ 10,000 level.
Bitcoin may not yet be in a mature bull market, but investor sentiment is currently pushing the pendulum in this direction. We may see the bull market rise to half and then see a retracement before or after the halving event.
Bitcoin under $ 10,000 may be a thing of the past
Many cryptocurrency analysts predict when we will never see the BTC price fall below 10,000 again, but with the advent of the golden cross, it may actually be the ultimate catalyst that will eventually push the price of Bitcoin to 5-digit numbers.
Lightning Torch founder Hodlonaut tweeted today:
I want to make a prediction and we will never see Bitcoin fall below $ 10,000.
Bitcoin is often referred to as a deflationary currency as it continuously reduces the release schedule of new coins. Ultimately, the economic laws of supply and demand will have an impact on Bitcoin's existing supply, and the production of its new coins will decrease, resulting in overall price increases.
As the price of BTC rises, as it is closely related to the price of Bitcoin, we can expect that the competitive currency season will indeed enter an overspeed operation. We have seen many traders diversify as the dominance of BTC has fallen sharply in the past few weeks.
So far this year, many competing currencies have outperformed Bitcoin, becoming the main indicator of the largest market capitalization currency. Smart money has been quietly occupying a place in Bitcoin and contenders, and prices have fallen during the winter of cryptocurrencies.
With the fever of the bull market in the media, we can expect to see a new generation of curious investors joining Bitcoin and altcoins, increasing the enthusiasm of retail investment for those institutions that have accumulated a lot in the bear market.