Prepare for a boring month High stakes
Given that Bitcoin (BTC) is struggling big time to reclaim the $8,000 level, many traders expect more downside pressure.
However, Benjamin Blunts appears to think that the current level could serve as a local bottom for Bitcoin before the leading cryptocurrency starts its next rally to $10,000.
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Prepare for a boring month
Blunts thinks that the benchmark cryptocurrency has entered a new accumulation stage that will be accompanied by sideways price moves. After two months of this yo-yo market, the trader expects BTC to stage a convincing breakout in May, which will coincide with the halving, the most anticipated event of this year.
best case scenario for $btc is we accumulate here for a few weeks and build up some steam for a breakout pic.twitter.com/s3MEFltkGI
— 🍄🌲Benjamin Blunts🌲🍄 (@SmartContracter) March 11, 2020
Last year, Bitcoin skyrocketed by more than 60 percent in May and extended these gains in June, reaching the 2019 high of $13,888. Then, the rally hit a pause button, and the crypto king endured a painful 50 percent correction in the fourth quarter after forming a series of lower highs.
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Blunts’ analysis falls in line with some other bullish price predictions. In particular, stock-to-flow model creator PlanB forecasted that BTC will stay above $10,000 after the upcoming supply reduction. Binance CEO Changpeng Zhao also doesn’t expect the top cryptocurrency to stay in the four-digit realm for long.
Nevertheless, this halving is a big gamble for miners who have continued to ramp up their equipment. If things go south and they startup capitulating, this could lead to a big bear market.