Can the upcoming halving event and the CME Futures gap boost Bitcoin price upward?
Bitcoin’s upcoming halving has long been regarded as the immediate impetus to impact the next BTC rally directly. Recently, the hopes of a bullish momentum in this event have been increasing as Bitcoin is still trapped in a downtrend.
If history repeats, this event will catalyze the next major price boom to bring Bitcoin back (or higher) the established ATH 2017.
The halving event drives up Bitcoin?
Analyst Willy Woo said in September that he believes BTC is about to enter the cumulative stage before the event, which could help fuel the next significant movement.
He explained in a recent tweet that Bitcoin’s decline in the event could signal that its price action during the period just before and after the event would disappoint investors.
This current downtrend could prove to be an ideal opportunity for investors to accumulate cryptocurrencies in anticipation of a halving rally, with retail buying likely to fuel the next rally.
Things investor Alistair Milne expects to happen over the halving in May 2020:
- BTC shorts closeout
- People re-accumulate BTC if they had sold
- Miners start to hoard (e.g., borrow USD against assets)
- Underperforming altcoins traded for BTC
- The bulls lever up
Things I expect to happen over the next 4-5 months due to the impending Bitcoin halving:
– BTC shorts close out
– People re-accumulate BTC if they had sold
– Miners start to hoard (e.g. borrow USD against assets)
– Under performing altcoins sold for BTC
– Bulls lever up— Alistair Milne (@alistairmilne) December 16, 2019
CME Futures gap
Per trader exitscammed, there exists a gap between the Bitcoin price of CME Futures in the range of $ 11,700 to $ 12,000, which was left behind after a sharp rally earlier this year. $ 12,000 is 70% higher than the current price.
$BTC when CME gap fill? pic.twitter.com/qLiMS5ycAA
— exitscammed (@exitscammed) December 15, 2019
This is important because Bitcoin has a history of filling the void, moving down, or rising to prices where the CME market is not trading. Looking at the chart of Richard Heart, you can see that BTC has filled almost every daily CME gap in the weeks after creating the gap.
Source: Trading View
Despite a gap that is up 70% from the current BTC price below $ 7,000, Heart notes that there exists one in the $ 3,000 where Bitcoin traded a year ago. If the trend of filling the gap over time continues, it’s possible that the cryptocurrency could reconsider that level.
Source: CME
Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Read more:
- Glassnode Research: Most BTC Investors Are Still Confident Hodl Bitcoin
- Bitcoin Halving Is Coming, But What Will This Affect The Price?