Market Participants in Disarray as Bitcoin Shows Little Post-Halving Volatility

The long-awaited Bitcoin Halving finally took place yesterday. However, the cryptocurrency giant did not exhibit substantial volatility as was expected. Also, Bitcoin’s hash rate has decreased just slightly several hours after the halving.

A long-term bullishness in BTC price is sure to occur courtesy of the halving, however, its short-term price impact remains unclear at this point. Data analyzing traders’ sentiment shows that market participants are divided on whether Bitcoin will see a post-halving surge or crash. Technical analysis, however, indicates that the price of BTC is set to surge and that the usual “sell the news” drop has already occurred.

Yesterday’s Halving has slashed Bitcoin’s mining reward by half and will reduce its inflation rate to about 1.8% annually.

The expectation of the halving triggering a short-term bullish move is based on the premise that miners will start holding their newly acquired BTC instead of selling it. Miners are expected to hold their coins and sell them after it appreciates as miners would be looking to offset the profit deficit induced by the halving.

Bitcoin (BTC) Value Forecast — May 12

BTC/USD Major Bias: Sideways

Supply Levels: $9,000, $9,500, and $10,000

Demand Levels: $8,200, $8,000, and $7,500

At this moment, BTC is range bound between $9,000 and $8,200. Yesterday, the price of BTC reached the two key levels on the heels of the halving event. Both values are the major supply and demand levels and a major break across any could send the price of BTC further in that direction.

Bitcoin remains under the 100 and 200-day moving averages and a newly formed downwards trendline putting it under bearish pressure. BTC has several hurdles to overcome before it can resume its upwards journey.

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