Traders have been left guessing about the price of the Bitcoin. The price of Bitcoin has been progressively in an exciting manner. However, there is likely to be a supply shock for the market.
The halvening event is ahead, and investors have a close watch on the price of the Bitcoin. The halvening is set to happen for every 210,000 blocks.
Alyse Killeen, stated, “In 2020 we’ll have just half the daily supply of Bitcoin that we do now.”
Killeen further added, that there is likely to be a higher demand for Bitcoin from new types of users who will have a great appetite for Bitcoin.
The lightning network of Bitcoin is meant to improve on the scalability of the coin. There are also advancements at the level of the SegWit, which will help with seeing different types of use cases of Bitcoin Technology.
The cryptocurrency market is highly volatile, and the Bitcoin does not help to respond to any of the variables which influence the trends in the traditional currencies, stocks, shares, or commodities. The traditional asset types, which move based on the company announcements, technological developments, and governments policies, but Bitcoin does not follow that pattern, and these parameters do not influence the price of Bitcoin.
High volumes do not back the current bullish trend of the Bitcoin. This is indicative of low investor confidence. If the trading volumes would go up, the price of the Bitcoin might increase above $8,500 over the weekend. This will validate the bearish channel breakout which occurred in the past week.
The recent rally of the BTC price can be short-lived as there is a clear divergence seen between the costs and the trading volumes.
The current breakout; however, does not have any substance. The sustainability of the rally is questionable as the volume is low in the 50-day average.
Bitcoin is attractive because it is scarce. While Bitcoin is volatile, there are a lot of reasons to be positive about its potential. On, one side, the argument of whether Bitcoin is a revolutionary invention or fraud of the century continues, and on another hand, its growth pattern continues.
Bitcoin has been destroying the idea that Bitcoin cannot be money by several price trends and transactions. Volatility is cited as a primary reason which makes it a not-so-viable mode of transaction. There is an alternative proposal with more money flowing into Bitcoin that the token will become less volatile.