The bullish price on bitcoin chart was broken to the upside on Thursday although it ended up rejected by a resistance on $9,600. Currently, the level has lowered back to $9,300. The volume on top 10 exchanges with significant volume has also dropped to half its level.
Despite the fall, Mati Greenspan, founder of Quantum Economics says in his daily newsletter that the flagship currency is promising, even as prices stay above 200 DMA on the downward channel.
Bitcoin to Reach $14,000
Benjamin Blunts, a market analyst who once called for bitcoin bottom at $3,000 in June is adamant that the ongoing Bull Run will see bitcoin’s price reach $14k at least.
Blunt continues that, from a macro point of view, the 5 rise wave is clear especially after the breaking of the 6k low key down trend. Considering the 2018 rise from the lows was also 5 waves, it is reasonable to expect the next rally to break a minimum of $14k highs.
Strong Volume Record for the Bitcoin Future Market
The bitcoin futures market on the other hand continue to record strong volumes. In July last year, open interest on CME bitcoin futures hit its peak at 6,075 BTC. A few months later in December, it went down to 3,186 BTC. However, following a great first week of January, open interest on CME peaked again to 5,400 BTC. It has since shed 400 BTC.
BTC Upcoming Halving
Meanwhile, Joey Krug and Dan Morehead, co-chief investors at Pantera capital had a discussion on bitcoin’s block reward halving which was published on Pantera Capital Medium blog.
In their discussion, they mentioned bitcoin’s last block reward that occurred in July 2016 when block reward was reduced from 25 BTC to 12.5 BTC. The historical correlation of bloc reward halving and increase in bitcoin prices in the months leading to the event were also mentioned.
Two schools of thought emanate from this belief. One that presumes that bitcoin halving, expected to happen in the coming months is common knowledge and everybody wants in. They would therefore not expect a big increase in price. The other is from the school of thought that not all retail investors know what halving really means and therefore the surge would still be considerably significant.
But even if we thought that everybody knows, it wouldn’t mean that there is no significant amount of money to be made. When you see a $20 bill on a sidewalk, would you say that it’s not real because someone else would have picked it already? Or do you just go ahead and pick it?