Bitcoin Past Data Suggests March to July Could Be Bullish

This past record does not guarantee future results, but suggests a bullish move is possible. Bitcoin often moves in a cyclical fashion, with ebbs and flows. In 2019, the effect of the futures market added another layer of bets on BTC future development, possibly creating an interplay between bullish and bearish attitudes.

Bitcoin also raises hopes for a bullish cycle in mid-2020, based on the general retreat in the last quarter of 2019, and predictions of a bottom reached in January.

Prices for bitcoin ran a relatively volatile cycle in the past day, sinking just below $7,000, then recovering again to above $7,340. Now, the scenario for BTC is also showing risk of sinking to new lows in the mid $6,000s, but also a possibility for hikes to $8,000 again. Bitcoin price fluctuations happen within a tight range, not excluding a potential capitulation to a lower range.

The period between March and July is also fraught with the halving of the block reward, scheduled to happen around May 15. This event may significantly sway prices around the event, in case the spike was not already discounted in 2019.

Miners Keep Boosting Performance in Early 2020 of Halving

Other factors that may a different level of speculation will be the bitcoin options markets. Just days from now, CME has scheduled the launch of its options product. Options also offer various trading strategies, where the essence is betting on the future BTC price, instead of taking actual physical delivery.

The Bitcoin mining economics may also play a role in 2020. Miners are as active as ever, posting another record above 114 quintillion hashes per second, and possibly as high as 119 quintillion hashes. Miners are one of the classes of potential traders with an interest in hedging BTC price risk, as well as getting the best price for their new coins.

Bitcoin is still significantly higher in comparison to its lows in December 2018.

The past year led to gains of about 85%, still a significant success, despite the slide from the mid-year peak.

What do you think about BTC performance in 2020? Share your thoughts in the comments section below!


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