Bitcoin is currently on the verge of a mega move in the coming year – whether bullish or bearish – as it sits comfortably on the $8,700 support/resistance level. While the technical and fundamental prospects points to a potential bullish run, given the upcoming block reward halving in May, there remains doubts on whether the retail market will react similar to the two previous halving periods or take a completely different route.
In this debate, two schools of thought take precedence – those who believe a similar bullish run to previous halvings will occur and those who believe the market has matured enough to avoid the euphoria that follows the natural supply decrease.
According to Bitcoin influencer and educator, Jimmy Song, the markets have learnt from the previous extra bullish momentum in 2013 and 2017, both years following the halving. In short tweet in the early morning on Friday this week, Jimmy said he believes the retail market in particular will “behave differently” in the next bull run as compared to previous runs.
He implied the market participants in the next bull should have learnt from previous failed trading strategies. Will the market react any different this time?
Erik Voorhees, CEO at Spaceshift, however does not believe the market will behave any different to previous bull runs as the investors coming into Bitcoin are new. Responding to Jimmy Song’s tweet, Erik does not think the market sentiments will change in the next bull run given the vulnerability of the market to chase quick gains. He replied,
“I thought the same after the Bitcoin bubble of 2013 and the Gox calamity. But it was not the case. The thing about new people is that they’re new.”
Currently, Bitcoin is changing hands at $8,695 USD as at time of writing, a flat out price in the past 24 hours. However, the markets look ripe for a bullish momentum in the longer term trading periods and it will be a wonderful sight to see how the market will react to the bull run – mature or euphoric?
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