Cutting the Bitcoin block reward in half earlier this year was an anticlimactic event for many in the cryptocurrency market. In fact, shortly after the halving, the price of the cryptocurrency fell as investors presumably thought it was an opportunity to profit.
Since then, Bitcoin has made a huge comeback. As Michael Goldstein pointed out, since the significant event, the cryptocurrency has gained about 44% against the dollar. This makes BTC one of the best performing assets in the world in this period.
Bitcoin is up over 44% since the halving.
– Michael Goldstein (@bitstein) August 17, 2020
It is important to note that it is impossible to quantify how much effect the halving had on Bitcoin's price action, as external factors may have been more important. Still, analysts expect more advantages for this nascent market.
Analysts: the market should still have more bullish movements
Coincident Capital, a cryptocurrency-focused hedge fund, believes there is little risk of resistance up to $ 13,800. The fund is led by Bryce Gilleland, Wen Hou, and Sunil Shah, all with experience in cryptocurrency trading and analysis.
There is really not much overhead resistance above 12k #bitcoin. Next up is 13.8K, peak of previous high, then ATH
– Coincident Capital (@CoincidentCap) August 17, 2020
There really isn't much resistance above $ 12k #bitcoin. The next one is at 13.8K, the peak of the previous high, then ATH (all-time high) ”.
Galaxy Digital's Mike Novogratz is also targeting the region at around $ 14,000. The former Goldman Sachs partner and Wall Street veteran commented earlier this month that Bitcoin is likely to move to that level due to central bank “liquidity pumps”.
In terms of macro scale, analysts are still considering a move to the record high of $ 20,000 and up, probably in six digits.
The analyst "Plan B" is an example, he has been one of the biggest drivers of the halving. Its controversial stock to flow model predicts that the price of Bitcoin will reach $ 100,000 by the end of December 2021.