A solid rise has made its way into the bitcoin books. Following our previous price piece, bitcoin was hovering around $645 but has now shot up to about $672 at press time.
In a discussion of the recent halving, one source says it best:
“Bitcoin price holds steady, and the reward halving has not seen any surprises in the mining sector. Price seems to be preparing for advance – not today – so, time to do something else than check the Bitcoin price chart like a squirrel for nuts… The ‘halvening’ caused no immediate fireworks, other than the sharp drop a few blocks prior to the event. Yet, we did not see a new low and price is holding a sideways path.”
The halving occurred just a few days ago, and while it did not lead to any immediate results, we still have plenty of time to witness a plausible ascension. At the rate it’s going, bitcoin is likely to experience a period of slow growth; a rise here, a rise there, maybe $5 to $20 each time. This would certainly be a big difference from the first halving’s results in 2012, which caused bitcoin’s price to increase dramatically.
But some believe a massive rise is still possible. As one source explains:
“A technical trading pattern commonly used by equity analysts has emerged on the digital currency’s chart – and it suggests that prices are posed to shoot even higher.”
Market reporter Joseph Adinolfi explains that the present bitcoin chart is exhibiting what’s known as a “pennant,” which suggests that a “long-term trend in the price” is about to resume after what could likely be a relatively brief period of consolidation. In other words, bitcoin is taking a rest and stretching its muscles before attempting the 400-yard dash. Not a bad strategy, when you think about it. If it works for athletes, it can work for digital currency.
Adinolfi goes on to suggest that the price of Bitcoin could potentially spike beyond the year’s current high of $764. While speaking of the halving, Adinolfi states:
“Though it has had little impact so far, some believe prices could rise further as the market adjusts to the newly restricted supply.”
However, he’s encouraging investors to act quickly before things take a upward turn:
“If you intend to trade based on the pattern… investors should act fast. A generally accepted rule of technical analysis is you want to see the break higher, or lower, no more than two-thirds of the way to the pattern’s apex – or the point when the two sloping lines would cross.”
Do you foresee a major jump in bitcoin’s price in the coming weeks? Post your thoughts below!
Images courtesy of btcmanager.com.
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