Regardless of a 30% price correction on Bitcoin, analysts are still bullish on the coin. On Saturday, BTC dropped 8%, and cynics believe that the rally towards a record all-time high is now over.
Bitcoin surged over the past two weeks, establishing an M-top at $13,177 and $13,739 before dipping to $9,600. Despite the drop, the majority of traders are expecting the digital assets to retrace to the 50% and 61.8% Fib retracement level, which is close to the CME futures gap. Equally, the coin has dipped out of the widening wedge that took it to its 2019 high from $4,000, and the parabolic movement is negated; thus there are chances of revisiting the 61.8% Fib retracement.
Bitcoin Turning to Be a Store of Value
In the past five years, the volume of unmoved Bitcoin has significantly increased, with coins being held in a single wallet for close to two years. This demonstrates the potential of Bitcoin being a store of value rather than a medium of exchange. There is a correlation between price increase amounts of unmoved Bitcoin in wallets as a store of value.
Analysts indicate that once the BTC/USD rally peaks, there will be a large volume of Bitcoin that will be available for cheap. BTC bull markets have so far corresponded with miner capitulation, and there is a tendency of BTC price rising from these lows to grow 100 fold. Since the February bottoming, BTC price has rallied close to 300%, and it is mirroring previous cycles.
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Miners Anticipate the 2020 Halving Event
Currently, miners are holding Bitcoin, as they anticipate the 2020 halving event. Despite the present correction, the price is unlikely to go below $3,120. It is expected that miners will be selling a few coins as they wait for 2020, and this will lead to price gains in the short-term. Selling will most likely resume once buying pressure declines.
Analysts expect Bitcoin price to hit $20,000 if it follows its near-term consolidation trend coupled with the pre-halving excitement.
Featured image: DepositPhotos © EdZbarzhyvetsky
