Hi folks,
The next Bitcoin halving takes place in less than a month and I want to provide an outlook of the Bitcoin price for the coming years. For the chart I am using the weekly timeframe with y-axis price illustrated in log.
From the halving date on (mid May) we can expect a significant decrease in sell-pressure since the block reward for miners will be halved (12.5 to 6.25). Even if we assume miners completely sell-off their block rewards, we can expect the same demand as we have now to increase the price strongly on a long-term perspective. From the last Bitcoin halving date to the peak of our last bull market it increased 3000%. My point is not, that we will see that increase again, but x multiple is realistic in the coming years, alone by the fact that the supply will decrease.
I drew a triangle in the chart (ignoring the 2 wicks) and I believe the Bitcoin halving will help us to break through the upside of it resulting in a strong price gain in the end of 2020 or beg of 2021. In Bitcoin's history the 50-55 RSI lvl tends to serve as support and right now we haven't even reached it. Once we get above it and manage to stay there, we should experience the full strength of the bulls.
The stock-to-flow ratio confirms that assumption (stock-to-flow ratio = current reserves / annual generation) given that the price will always move close to it. It is no guarantee, but serves as a great reference.
EDIT: I wanted to add a stock-to-flow ratio chart, but I don't know how do it. If anyone knows, I'd highly appreciate it.
The next Bitcoin halving takes place in less than a month and I want to provide an outlook of the Bitcoin price for the coming years. For the chart I am using the weekly timeframe with y-axis price illustrated in log.
From the halving date on (mid May) we can expect a significant decrease in sell-pressure since the block reward for miners will be halved (12.5 to 6.25). Even if we assume miners completely sell-off their block rewards, we can expect the same demand as we have now to increase the price strongly on a long-term perspective. From the last Bitcoin halving date to the peak of our last bull market it increased 3000%. My point is not, that we will see that increase again, but x multiple is realistic in the coming years, alone by the fact that the supply will decrease.
I drew a triangle in the chart (ignoring the 2 wicks) and I believe the Bitcoin halving will help us to break through the upside of it resulting in a strong price gain in the end of 2020 or beg of 2021. In Bitcoin's history the 50-55 RSI lvl tends to serve as support and right now we haven't even reached it. Once we get above it and manage to stay there, we should experience the full strength of the bulls.
The stock-to-flow ratio confirms that assumption (stock-to-flow ratio = current reserves / annual generation) given that the price will always move close to it. It is no guarantee, but serves as a great reference.
EDIT: I wanted to add a stock-to-flow ratio chart, but I don't know how do it. If anyone knows, I'd highly appreciate it.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.