The December 18 Bitcoin bounce left the leading coin’s market trading sideways. Meanwhile, the daily chart lately informed a delicate equilibrium pattern which seems to be in favour of the bears. The digital asset even realised a high of at least $7,695 following the initial bull run. Analysts are also anticipating a high market turn around following the May Halving.
However, this market situation would not last for a long time and quickly undergo a downside towards its current low. The coin is now trading at $7,116 and could be heading for a dangerous close; in fact even as low as confirming a further break of the equilibrium pattern.
Additionally, the 24-hour trading volume has witnessed a daily decreasing pattern with every passing day. Moreover, the coin could set the pace for a higher move.
How Will Bitcoin’s Halving Affect the Price?
Noteworthy is the looming Bitcoin halving that will split miner rewards by half. A situation that traders and community enthusiasts are well aware of. Based on past Bitcoin perfomance after a halving event, traders anticipate extremely positive bullish zones for the asset. While the past 10 years Bitcoin has posted high prices after halving, this year should be no different. A recent tweet by “Plan B” states that halving is usually priced using the Stock to Flow Model; a theory only known to as few as 10% of people. The model implements Bitcoin as a commodity and positions significant value on the scarcity of Bitcoin. Meanwhile, the model’s intent is to predict Bitcoin’s price and project its outreach to at least $ million between the years 2025 – 2028.
Several Twitter users gave their response about the situation noting that a 10 per cent figure is probably an overprojection; given that most people are not, in fact, aware of the model or even the halving of Bitcoin. Moreover, another Twitter user stated that Halving was a mechanism for triggering price ascents; which would, in turn, attract masses of people to the market. Hence raising the price even higher.