Now, analysts are speculating that anticipation for Bitcoin’s upcoming “halving” event could lead its price to surge.
At the time of writing, Bitcoin is trading flat just below $3,600. Over the past couple of weeks, BTC has established the $3,500 region as a strong level of support, but without the cryptocurrency’s bulls ramping up buying pressure, this support level could be weakening.
Despite this, one theory regarding the potential price effect of the Bitcoin mining rewards change that is set to occur sometime in May of 2020 (assuming there aren’t any major swings with Bitcoin’s mining hash rate) shows that historically, Bitcoin’s price has surged precisely one year before the halving event occurs.
In a recent tweet from popular cryptocurrency analyst, Moon Overlord, he explains that if this theory proves to be true this year, BTC may only see sideways price action for a few more months before surging.
“Bitcoin has traditionally starting pumping around 1 year on average before it’s halving date… The next halving is estimated to be May 2020, meaning that the uptrend will begin in May of this year… In which case you’d only have a few months left to buy $BTC at this low of price,” he explained while referencing a BTC chart that provides support for this claim.
#Bitcoin has traditionally starting pumping around 1 year on average before it's halving date The next halving is estimated to be May 2020, meaning that the uptrend will begin in May of this year In which case you'd only have a few months left to buy $BTC at this low of price pic.twitter.com/aWDIHWDyKC — Moon Overlord (@MoonOverlord) January 23, 2019
If this is theory, which does appear to be historically accurate, is true, then BTC will begin a fresh uptrend in mid-to-late May that may allow the cryptocurrency to regain much of its recent losses.
Recently, other popular theories set forth by analysts have signaled that Bitcoin’s historical price action may strongly support the notion of 2019 proving to be a good year for the cryptocurrency.
Galaxy, another popular cryptocurrency analyst, recently put forth a chart that draws a striking parallel between Bitcoin’s 2015 price action and current price action, which could mean that the markets will soon enter a multi-month accumulation phase followed by an uptrend.
“We’re approaching the 420 day mark which ended the 2015 bear market and if history repeats itself, we’re moving towards several months of accumulation and a new bull cycle starting mid-late 2019,” he explained, bullishly noting that Bitcoin’s future “lies in the study of the past.”
"The future lies in the study of the past" We're approaching the 420 day mark which ended the 2015 bear market and if history repeats itself, we're moving towards several months of accumulation and a new bull cycle starting mid-late 2019. $BTC #bitcoin pic.twitter.com/VX8ok9oFue — Galaxy (@galaxybtc) January 14, 2019
The two theories regarding BTC mimicking 2015’s price action, and BTC surging this Summer on expectations for the halving event both offer similar timelines for when it would start a fresh uptrend, which may mean that history truly is on Bitcoin’s side.