Crypto Daily: Bitcoin Expected To Drop In Weeks After Halving

Last night, Bitcoin halved its block reward for the third time in history. As a result, the reward moved from 12.5 BTC per block to 6.25 BTC. This is probably the biggest event in the cryptocurrency market for the past two years. And therefore, it was a highly anticipated one.

Trading activity prior to the halving was intense and volatile. The price of BTC changed by nearly $1,000 or 12% during the session, with trading volumes getting close to historic peaks.

That said, the technical picture remains unchanged. The price continued to fluctuate around the $8,700 mark with significant up and down deviations, briefly reaching the $9,200 level. If you read our previous analysis, you could have earned up to 6% on this single movement.

Over the weekend, the market was hit by profit taking on whale positions. That reaction is far from over. In the weeks ahead, we can expect small and middle sized traders to replicate the sales and add a significant bearish pressure on Bitcoin.

Our recommendation remains the same: waiting. The next target areas to open long positions will be located at $7,600 — $7,300 — $6,800.

Currently, the market is extremely unstable, and the price of Bitcoin may drop any time soon. Because of this, we also suggest staying away from altcoin positions.

Disclaimer: You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Cryptocurrencies are risky and may not be suitable for all investors. Ensure you understand the risks involved as you may lose all your invested capital. The past performance of cryptocurrencies is not a reliable indicator of future results.