One thing seems certain and that's an inevitable Bitcoin halving. Nevertheless, you can't avoid the uncertainties that the market can present during hot times like this. We have seen bitcoin swinging within the 60k mark for a while and you have to admit it's for a reason. Halving has always produced positive results according to records. We have seen it happen three consecutive times. What is worth noting is that this assurance is within the 360 days charts and this presents both opportunity and loss?.
The ETF firms have been helping sweep behind the bitcoin leftovers pushing or should I say helping to stabilize its price. A lot have been selling in the process and it seems their sales are not really affecting the market. Perhaps day traders and small investors are the ones in the current selling Circle, should this bother you?, not much from my view.
Have you considered what is likely to happen after the halving? The mining rate will be tightened through the 50% slash. We have seen the present challenge bitcoin miners are facing when it comes to energy and powerful computers to run this business. A lot of mining farms are down, you know what I mean? Yes bankruptcy and others may have to follow suit. Not a good word to spill out yet its true, not all miners will survive this slash. It NOW boils down to survival of the fittest.
So how will they survive? Simple, they'll need to pull in the resources(finance) and how can this be achieved? One of the major ways will be by selling a lot of their bitcoin holdings to be able to stay in business. We all know the cost of energy in the US and the extra charges which amount to a lot of expenses. From here we may need to ask, can this particular halving be a lot more different from others? How many percent of miners may have to let go of their current bitcoin holding and how will it affect the bitcoin market immediately after the halving.
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A lot will want to bite into the green candles that may surface. No doubt the bitcoin flourishing times has always spread light into the altcoin industry and the idea may just be as usual, sell short and invest in the altcoin industry. One needs to be careful, those who don't want to stay long in the bitcoin race may suffer loss. If miners give up the coins to gather revenue and stay in business, how long will it take to recover from such a market sell? And how certain are they to even stay in business after the sale.
Heavy hands will be selling and the result may not be as it was when day traders were just making fractional gains. Can ETF firms still sweep? They wouldn't lose anything if they allowed bitcoin to dip to a more favorable buy in position. As you aim to pursue the FOMO, draft a plan to withstand an unfavorable 150 days first should the sell off be more than expected. When miners buy off the first price hype cycle, FUD may cause a down bitcoin price trend, if the bulls don't recover quick enough, it may further dip the price of bitcoin. Short traders may be stuck in this market liquidation.
Familiar question with a familiar answer, we have seen the repetition overtime. I did put it up in one of my recent articles on the need for altcoins to show resilience. If the bitcoin price refuses to move as a result of miners selling or any other attributed factor, it will be red everywhere. The recovery on a 360 days range means altcoin may have to be on a long rest.
Another thing to understand here is that most of the short gainers will have to give up their altcoins in order to buy bitcoin, giving a red flag market for altcoin even ahead of the halving. Should it not work out for quick gains, it may be a double red for the altcoin industry.
Inasmuch as anything is possible ahead of the coming halving, we need to understand the current pressure miners are facing. It never happened during the first and second halvings, the third halving was an eye opener and this fourth one may seem an opportunity to make substantial gains for financial stamina. The bitcoin sell off from my point of view will be huge. If they'll still survive the bankruptcy will be a later story.
To conclude, let me add, who are the bulls involved in the next halving and what are their market stamina. The ETF gives hopes about a possible upward market trend yet when the sellers are going to be average miningfarms it could also pose a bearish threat. Many think it will hit 100k and above shortly after the halving, we are seeing bitcoin correcting itself within the 60K region for a while now. trade with care, there is a financial imbalance in the mining community and as it stands, anything is possible.
