As the third Bitcoin halving catches attention days into D-Day, analysts predict a post-halving crash as the event attracts newbie traders.
With less than a week to go until the highly anticipated Bitcoin halving, the tension is mounting and traders are waiting for a big move. One analyst thinks that it has been over-hyped and there will be a quick selloff after the event.
Bitcoin has been consolidating around $9,000 for just under a week. The wedge formation on the chart is thinning and coming to its apex, which usually means a big move is imminent.
With just six days to go to the BTC halving, there is an air of anticipation in the crypto-sphere, but it would well be over-hyped.
A crypto analyst on Twitter, CryptoWhale, has looked at previously over-hyped events such as the Bakkt futures launch, noting that prices did not surge afterward. In fact, they did the opposite.
Bitcoin is up 164% since March, which is due to the hype surrounding the halving event. Once it happens soon, there will be a quick sell-off when noobs don’t see instant riches.
People fail to understand that upcoming events are priced prior to it actually happening. #Bitcoin is up 164% since March, which is due to the hype surrounding the halving event. Once it happens soon, there will be a quick sell-off when noobs don't see instant riches. pic.twitter.com/Yqo8YuN2NE
— CryptoWhale (@CryptoWhale) May 5, 2020
It could well be that prices do not increase instantly following the halving. There is a greater likelihood of them pulling back by a significant amount and consolidating for several months.
The current coronavirus induced economic calamity does not bode well for any new capital inflows for any asset, Bitcoin included.
It may well be the case that we have to wait until 2021 before any real movement can be measured on crypto charts.
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