Analyst Suggests BTC Halving Trading Strategy Can be Successful
Crypto analyst casts doubt on the effectiveness of a popular Bitcoin trading strategy, while BTC’s price sees a slight gain and trading volume increases.
Key Points
- Crypto analyst questions the effectiveness of a popular BTC trading strategy based on halving cycles.
- BTC’s price shows a small gain in the past 24 hours, trading at $30,650.72.
- BTC’s trading volume increases significantly by 47.65%.
- Short-term bullish cycle indicated by EMA lines, but a medium-term bearish chart pattern suggests a possible trend reversal.
Crypto analyst PlanB has raised doubts about the effectiveness of a popular Bitcoin (BTC) trading strategy that involves purchasing BTC six months before the halving and selling it 18 months after the halving. This strategy has historically generated better returns than a simple buy-and-hold strategy, according to the analyst. However, PlanB questioned whether this strategy will continue to be effective in the future.
After gaining 0.40% in the past 24 hours, BTC is currently trading at $30,650.72, according to CoinMarketCap. This positive daily performance adds to BTC’s overall weekly gain of 1.03%.
BTC’s trading volume has also seen a significant increase in the past 24 hours. The 24-hour trading volume now stands at $11,899,592,802, which accounts for a 47.65% increase.
BTC Climbs CoinMarketCap’s Trending List
BTC has managed to secure the number 2 position on CoinMarketCap’s trending list. It currently ranks behind the popular meme coin Pepe (PEPE) and ahead of Litecoin (LTC).
IMO #bitcoin 2020 halving will be like 2012 & 2016. As per S2F model I expect 10x price (order of magnitude, not precise) 1-2 yrs after the halving. Halving will be make-or-break for S2F model. I hope this halving will teach us more about underlying fundamentals & network effects pic.twitter.com/kiTdN0n3Lu
— PlanB (@100trillionUSD) April 16, 2020
Short-Term Bullish Cycle Suggested by EMA Lines
At present, BTC is supported by the 9-day Exponential Moving Average (EMA) line, which is positioned above the 20-day EMA line. This indicates a short-term bullish cycle and suggests that BTC’s price will continue to rise in the next 24-48 hours.
Bearish Chart Pattern on BTC’s Daily Chart
Despite the bullishness expressed by the EMA lines, a medium-term bearish chart pattern is forming on BTC’s daily chart. This ascending wedge pattern, if validated, could lead to a reversal of BTC’s trend from bullish to bearish.
Potential Price Scenarios
As BTC approaches the apex of the chart pattern, its price may continue to rise in the coming two weeks. However, there is also a possibility of a price decline in the next week, considering that BTC is trading near the upper level of the bearish chart pattern. In this scenario, BTC’s price may drop below the 50-day EMA line towards the lower level of the chart pattern, reaching around $27,620.
The information presented in this analysis is published in good faith, but readers are advised to conduct their own research and due diligence. Any actions taken by readers are done so at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss resulting from the information provided.
