- Bitcoin (BTC) continues its downward trend
- Traders and analysts are hoping on BTC halving to restore the coin
Bitcoin News Today – The chances that Bitcoin (BTC) would experience a Christmas rally is gradually slimming down. Bitcoin has maintained its bearishness all through the second half of this year, and it does not look like reversing before the end of the year. Many are now putting on their hope on the forthcoming BTC halving, which would take place in May next year.
Bitcoin (BTC) Continues to Head South
A few hours ago, the world’s most dominant digital currency fell out of its 3-day consolidation channel and plunged to $7,100. At the time of writing, Bitcoin was changing hands at $7,190 but the digital currency looked poised to plunge to the $7k level. Bitcoin is down about three percent today, and it might drop to the high $6k area in the short-term.
Bitcoin (BTC) Price Today – BTC / USD
Since the weekend, Bitcoin is down by about 8 percent, and the downtrend is gaining momentum. Crypto analysts are also predicting that Bitcoin might settle at the $6k level for a while. They believe that BTC will test that level before the end of this year. This leaves all hope on the halving event of BTC on May 14 next year. The halving will usher in a series of bullish factors such as a reduced number of coins added to the total supply of the digital currency. This would increase the notion of scarcity.
Will BTC Halving Restore the Price of the Coin?
As the mining rewards drop to 6.25 BTC from 12.5 BTC, the inflation rate of the digital currency also falls below the central bank target of 2 percent. The inflation of BTC will be 1.8 percent and with 86 percent of the coin already mined, that concept of scarcity will drive demand. The past two halvings in 2016 and 2012 saw the prices of BTC surging after the halving event, not before.
PlanB – a crypto analyst – recently pointed out that it did not take more than a year for the market to start rising. Via a tweet, he said:
“Well, it did not… look for yourself: in the chart, the halving is when blue turns red: the market immediately rises after a halving.”
Getting some questions about why in previous halvings (November 2012 and July 2016) it took well over a year for the market to start surging..
Well, it didn't .. look for yourself: in the chart the halving is when blue turns to red: the market immediately rises after a halving🚀 pic.twitter.com/geL71dJOV7
— PlanB (@100trillionUSD) December 3, 2019
If history repeats itself, then the market should start surging in mid-2020. According to the analyst, the rise of the market was slower in 2016-2017 because ICOs and altcoins stole a bit of the thunder, but that will not be the case next year. At press time, the dominance level of Bitcoin is 67 percent, and it has increased by about 30 percent this year as altcoins melted down.