Bit-comment: Bitcoin probes growth opportunities approaching halving

Bitcoin came close to $7,800 and is holding at that level. The Crypto Fear & Greed Index rose by another 1 point in a day. The RSI for the BTCUSD pair corrected slightly after rising to 63. The market of altcoins shows almost zero dynamics. It seems that the crypto market is frozen waiting for a new trigger. The approach of halving appears to have started to outweigh the news around the epidemic. Crypto market participants agree that halving should have a positive impact on the price of bitcoin, even if it takes some time.

The price should increase due to a lower market ‘supply’, as some of the miners will go out of business following a decrease in the reward for the mined block. This will increase the deficit of bitcoins in the market, while the emission limitation, included in the algorithm, should support the price of the first digital coin under challenging moments. So far, we have seen that the bitcoin is gaining support. The last such fact was a certain buyback after the collapse in the middle of March. Now, the best proof of bright prospects for the project could be a sharp growth towards $9K, and most importantly – the ability to maintain this price level after halving.

The FxPro Analyst Team