Journalist
- Bitcoin’s half-life event may tarnish bullish predictions
- Cardano, MATIC and other cryptos are likely to rise in value but short-term losses can still occur.
Bitcoin’s [BTC] Halfing is about ten days awayThis event will lower the block reward from 3.125 BTC to 3,125 BTC. It might have been priced into the market because everyone knows it’s coming. But there are many factors to consider.
Since the beginning of March, Bitcoin’s price has been steadily above $60,000. The cryptocurrency quickly retreated from the charts after it reached a new ATH of $73.7k. How will the price of altcoins react to the new halving? Cardano [ADA] You can also find out more about the following: MATIC] What is the impact?
Compare the price of the current year to 2020 and 2016.
BTC was halved on the 11th of May 2020, and again on 9th July 2016. Bitcoin’s range in May 2020 was $8,500 – $10,000. In the month prior, cryptocurrency rose from $6,000 up to $9400.
Bitcoin’s price rose from $440 in May to $785 between June and July 2016. Around the time of the halving in July, price movement was muted. Prices remained within the $630-680 range for almost a whole month.
Price action in the last two months has been closer to 2016 than 2020. Similarities include a rise in price before the halving and a subsequent range. In August 2016, a deep retracement of $500 occurred. If these similarities hold true, Bitcoin could retreat to $50k by May.
Investors in Cardano/MATIC should expect the following:
AMBCrypto examined the metrics on the chain of both altcoins in order to gauge investor confidence over the past few weeks. Cardano’s 30-day MVRV has been strongly negative ever since 17th March. It hasn’t yet reached positive territory, indicating that the holders are at a disadvantage.
The mean coinage began to rise steadily. It is important to note that this can be interpreted as a buy signal, as it indicates accumulation despite recent pressures. The sentiment was tepid.
MATIC appeared to have a similar situation. Recent weighted sentiments have been bearish, reflecting a decline in social media engagement. The mean coinage appeared to be on an upward trend, but not quite as strongly as ADA.
You can read more about it here Polygon’s [MATIC] Price Prediction 2024-25
Like Cardano, the 30-day MVRV was negative. Another strong buy signal. Investors should however be aware of the possibility of Bitcoin experiencing a massive wave of sales in the near future. If we do get a deep drop, they should be ready to purchase it.