Bitcoin appears to be trading stably after pushing to break $9000, earlier this week. The current Bitcoin price is around $8600 and doesn’t show much volatility. However, the bear are in control mostly. The bullish momentum appears to be broken for now. Last week, Bitcoin rose rapidly from $8200 to $9200 and attempted to break through the next significant resistance and psychological mark of $10,000. However, the rally ran out of steam, due to sell pressure and less enthusiasm from the bulls.
Bitcoin Halving
Only 100 days are left until the Bitcoin Halving happens and sees reward decrease from 12.5 to 6.25 BTC. Each time, it has happened in the past, Bitcoin has risen to reach new highs. When this happens, the current figure of 1800 BTC mined every day will drop to 900 BTC. The inflation rate will go to 1.8%, the supply will become scarce.
Bitcoin Halving events are marked with turbulence and price volatility. However, it has resulted in profitable price movements for traders and investors alike. Analysts are saying that Bitcoin is likely to see upward movement in the coming days, as the FOMO builds, before this significant event.
Plus Token Scam and Sell Pressure
A major scam in the crypto-world, Plus token ponzi scheme promising “high yields on investment” especially popular in China and Korea, relieved unsuspecting people out of 187,000 BTC, 789,000 ETH and 26,000,000 EOS, over its entire running duration. This stash is worth in billions.
Following the team’s arrest, the fate of this massive stash is unknown. However, forensic analysis reveals that the funds were moved from Plus token wallets to various exchanges, causing massive downward sell pressure and impact on Bitcoin price. While the team has sold a considerable amount of tokens, throughout 2019. It is estimated that a large number of scammed tokens are still being liquidated over exchanges.
Where will Bitcoin Price Go Next?
Bitcoin is currently bearish with traders being advised to maintain only small term short positions while trading. The relative strength index (RSI) is showing neutral, but there is strong bearish bias on other indicators. This is an expected correction after the last week’s bull run. The price is expected to fluctuate widely in the coming days, as the Bitcoin CME monthly futures expires on Jan 31.
The long term outlook is still positive with major adoption already inbound and case for Bitcoin advancing from the recent financial turmoil and geopolitical situation. Bitcoin Halving will approach near mid May 2020 and improve the prices in a positive way. Bitcoin was the highest performing asset in all classes, in the last decade and there is no indication that this is likely to change anytime sooner.
