Bitcoin Price Analysis: BTC Drops With Just 2-days To Go Until Halving – What Is Going On?

With a couple of days to go until the anticipated block halving event, the price of BTC has rolled over and dropped by a total of 2.3% to reach the $9,700 support level. Prior to this, BTC managed to surge by around 10% to reach as high as $10,000 during the week. It was unable to close above $10,000 which caused the coin to drop slightly over the past 2-days.

It is unclear what will happen after the block halving event. Statistics from Santiment are showing that many dormant BTC addresses have started to move their coins again which could suggest that people are gearing up to sell their BTC after the block halving. Furthermore, the Coronavirus pandemic is still not over and there are many unemployed people across the globe. If people are not earning then why would they buy BTC?

Nevertheless, BTC is slated to be a deflationary currency and as the FED continues to print money it has been suggested that institutions might start to load up on BTC to hedge against the debasing US Dollar and take advantage of the digital scarcity that BTC has to offer.

Bitcoin Price Analysis

BTC/USD – Daily CHART – SHORT TERM

Market Overview

Analyzing the daily chart above, we can see that BTC managed to break the resistance at $9,100 a few days ago as it surged all the way into the $10,000 level. More specifically, it looks like it closed at the 1.272 Fib Extension level at $9,986 before rolling over and falling.

BTC is now trading in the $9,700 region.

Short term prediction: BULLISH

BTC remains bullish in the short term and would have to drop beneath $8,600 to turn neutral.

If the sellers do push lower, the first level of support lies at $9,600. Beneath this, support lies at $9,200, $9,100, and $9,000. Beneath $9,000, added support is located at $8,800 and $8,600 (.236 Fib Retracement level).

On the other side, if the buyers push higher, the first level of resistance is at $10,000. Above this, resistance lies at $10,247 (1.414 Fib Extension), $10,457 (1.618 Fib Extension – pink), and $10,621.

Key Levels

Support: $9,600, $9,200, $9,100, $9,000, $8,950, $8,800.

Resistance: $10,000, $10,247, $10,457, $10,621.