Rally prior to halving: Bitcoin has just bounced off the baseline of stock to flow

Since the beginning of 2020, talking about the next halving or halving of Bitcoin has caused the first cryptocurrency and the rest of the cryptocurrency market to skyrocket.

Only last week there was a setback, caused by panic in the entire market related to the coronavirus. But despite the massive sale, Bitcoin remains bullish, bouncing off the stock-to-flow baseline that suggests that the value of the asset will increase exponentially after halving or halving in May.

Bitcoin halving or halving is on the horizon

There are few narratives surrounding Bitcoin that have an echo camera as strong as the next halving scheduled for this May 2020.

The encryption market has been anxiously waiting for the halving since the downward trend of the encryption market, since the reduction in the supply of Bitcoin caused by the halving is expected to cause an imbalance of supply and the demand that causes an increase in prices.

Each halving or precoded halving reduces the reward for each mine block miners receive half for the work done, hence the appropriate name of the event.

Because much of Bitcoin’s value is based on its digital shortage, the event is especially notable.

It is so remarkable that a flow stock model has been developed to track the progression of Bitcoin prices based on that shortage.

This model is widely cited throughout the crypto industry and even in conventional finance, and points out that Bitcoin will reach prices of $ 55,000 after halving or halving.

The first cryptocurrency bounces off the baseline of stock to flow

The model includes a reference moving average of 10 days and one year, together with another moving average that represents the difference in real price compared to what the flow stock model projects.

According to that projection, Bitcoin simply bounced perfectly at the 365-day baseline.

During the previous two cycles of Bitcoin bear and bull, the crypto asset did the same just before halving, before going to a monstrous rally.

Just before halving or halving, that monster headed back to the same baseline, where it bounced once again.

However, the last rebound was the big final fall before Bitcoin took off in a full-blown bull market.

However, this time may be different. Bitcoin now has strong competition from the rest of the altcoin market, and the big financial market is in crisis due to fears about a possible pandemic, an impending war and a total global economic collapse.

Although the asset was designed to replace overextended fiat currencies in the face of an economic recession, the high-risk speculative asset may be too young at this stage and time to meet that ultimate goal.

A collapse of the monetary system could create too much fear for investors to consider this class of assets, even with a catalyst such as halving or halving.

With so much at stake at the present time in cryptography, the fate of Bitcoin is currently at stake.

Reference: newsbtc.com

Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.

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