It’s been a full week after the Bitcoin halving and the price has yet to explode like many believed it would. That’s expected – in the wake of the COVID-19 coronavirus pandemic, Bitcoin has yet to reach legendary price heights.
Since the halving didn’t immediately skyrocket the price, many believed it turned out to be a non-event. However, a look at the technical indicators will show you that Bitcoin is on the rise even if it’s making baby steps.
After a bit of a drop in the following days after the halving, Bitcoin has been on the rise again constantly testing the $10K mark. It hasn’t made a dent yet, but experts are sure that once it goes over the line, there’s no coming back.
The last week saw Bitcoin consolidating its focal point of $9,500. This comes after the Fed admitted to flooding the market with cash. The network hash rate after the halving has expectedly been low and the difficulty is expected to decrease as well. If Bitcoin is to achieve stability and balance, the mining difficult must soon be adjusted.
The world is in serious financial problems right now with the Federal Reserve admitting to flooding the system with cash. Money printing activities have been on a high recently as the system deals with the chaos of the coronavirus pandemic. The market crash in March has coincided with Bitcoin’s fortunes and that shouldn’t come as a surprise.
When asked where the trillions of dollars came from, US Federal Reserve chairman Jerome Powell admitted that they “print it digitally”. If the past few months have taught us anything, it is that the fiat system is ailing and Bitcoin offers an escape route. Of course, many things will need to change before the world shifts to digital currencies, but it is a way out.
A Golden Cross on the Horizon
Crypto experts have pointed out at the 50-day moving average as the indicator that confirms Bitcoin will soon turn bullish. A golden cross is on the horizon with the 50-day moving average appearing to soon cross with the 200-day MA. This is the 7th such cross in Bitcoin’s lifetime and the first since mid-February.
When this occurs, it is seen as a signal for trend followers to buy. On the opposite, a bull cross is seen as a sell signal. Once confirmed, a golden cross often leads to strong price gains thanks to additional buying pressure from traders.
Experts such as Leonard Neo from Stack fully expect the upcoming golden cross to do wonders for cryptos. He considers moving averages to be best-performing strategies applied to cryptos. The golden cross last April resulted in 130% gains over a 64-day period and others have done well for Bitcoin’s price too.
What makes this time different is the recent Bitcoin halving and the current state with the pandemic. The pandemic has changed the way we see cash forever and Bitcoin and cryptos have been riding high recently. We may soon enter a brave new digital era of finances that has been in the making for years.