Analyzing the price action and other metrics in the premier digital coin, a week after the block rewards were cut in half
The much-touted Bitcoin halving has finally taken place — an in-built mechanism to control the inflation in the crypto kingpin. Prior to the event, I wrote about how BTC was on the move with the upcoming halving. Perhaps the time frame is too short to evaluate the impact the event had on bitcoin, nonetheless, it can give a snapshot of things to come.
Before looking at what happened in the Bitcoin Options market, let’s start off with the price action. The price for BTCUSD is at a key juncture in its current trend or even the larger picture. As I discussed in my previous piece, BTC has been unsuccessful multiple times since last October to convincingly pierce the key resistance at $10K.
The good thing is that the price has rebounded significantly since the lows reached in March and maintained a short term bullish channel, but on the flip side it has failed to overtake the psychological barrier of $10K thrice since the beginning of May. And the crypto bulls who were so desperately counting on the halving event to provide the catalyst have been disappointed so far.
Not all is lost though. BTCUSD is in a congestion zone below this level and might just be consolidating before the next move up (or down) as evident in the chart above. The channel floor of $8500 seems to be acting as the support for now with any move below that signaling a pause in the current bull trend. Long term prospects of bitcoin still hinge on crossing that all-important $10K level.