Bitcoin for the first time in reached $10,000 level. Do we already entered bullish trend caused by the halving? The Bitcoin price broke an important psychological level of $10k Bitcoin is among the five-digit values for the first time this year. He was last seen at similar price range in September last year. In less than 5 months, the bitcoin price managed to fall by 35%, in the meantime falling by $6,5k. However, the last month or so, have been very successful for bitcoin, as the price rose by 50% If we count the low of $6.58k recorded on December 18, 2019. Today February 9, 2020, bitcoin is listed at around $10.1k which mean we registered a 2.3% increase in the last 24 hours. Over the past week, the most popular cryptocurrency has already gained 8%, and the monthly profit rate reaches 23%.
Bullish pattern caused by the imminent halving
We may have multiple reasons causing recent bitcoin price increases. Some analysts associate it with an increase in demand for new asset class which will be a safe haven countering the growing epidemic of the new Wuhan coronavirus, Middle East unrest and potential future global economic crisis.
However, the explanation indicated that the upcoming "halving" of bitcoin is the main reason behind price gain seems likely too. Does Bitcoin halving spell new level of gains for BTC? Let us just remind you that bitcoin's halving happens every 210 thousand mined blocks of bitcoin, and the next one will take place in May (in less than 100 days) this year. Looking at the history of bitcoin prices, subsequent periods of bull market and bear market on the bitcoin market alternate, and we noticed that the bear market usually falls in this middle period between halving. This happened before each of the previous three bitcoin halvings, and it seems to be happening again.
The real question – how the price of BTC will shape?
What has happened three times already may be repeated for the fourth time, although it does not have to be. However, if it happens again, we may find that we are dealing with a pattern. We will have another case increased bitcoin popularity, the topic gets into the mainstream media, which will cause new capital to flow into the cryptocurrency market.
The most important issue for investors is usually how much you can earn. This can never be predicted with 100% accuracy. However, as bitcoin price increases, more analysts appear to announce that BTC price will end up being extremely high. Like Anthony Pompliano, co-founder of the Morgan Creek Digital cryptocurrency investment company, which predicts that by the end of December 2021 bitcoin will hit $100k price range.
Google Trends vs. Bitcoin Price
Although the bitcoin price has already gained over 50% in less than two months, it seems that, if we are dealing with a new bitcoin bullish pattern, we are still at an early stage. Bitcoin related topics are still not visible in mainstream media.
The theory that we are not reached true bullish market yet is fueled by checking the popularity of the "bitcoin" keyword in Google Trends. A quick look at the data shows that the highest level of interest in bitcoin was at the peak of the last bitcoin bull ride in December 2017. Today bitcoin keyword popularity reaches only 11% of the popularity BTC had in December 2017.
One thing to consider is that if we deal with the beginning of new bullish trend, the popularity of bitcoin keyword will outpace its popularity from December 2017. How the price of Bitcoin will shape, and how it will impact the whole cryptocurrency industry is yet to be seen. One is certain, it will be an interesting show to see.
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