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.
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