Bitcoin (BTC) price has seen its talk and analysis sharply rise almost making some forget we are amidst a deadly coronavirus pandemic. With 2020 halving just around 3 weeks to go, its price is being monitored very closely, owing to the number of both retail and institutional investors betting on the asset.
At the time of reporting, the Bitcoin U.S. dollar derivative was trading at around $6,880 after being unable to push beyond the last two months all-time high.
This is approximately 4% in regards to the day’s opening, whereby the asset was trading slightly above $7,100.
Bitcoin Technical View Point
The asset has been rising steadily since the free fall that took place in March, which left the asset trading half the price it was trading before the coronavirus scare, slightly above $10K. its analysis is becoming complex by the day owing to the fact that it is highly affected by speculative trading and mass psychology rules the game.
According to a recent crypto analysis by a senior analyst at RoboForex, Dmitry Gurkovsky, Bitcoin’s new decline trend, which formed after the bulls were unable to fix the price above $8,000, confirms that the asset is headed towards $4030. His argument was based on the technical side of view, where he supported it by citing the RSI and moving average all indicating an imminent fall.
Bitcoin price has stamped its dominance in the market, whereby it even controls the altcoin industry. Recently, whenever the Bitcoin price rises it has been observed that both ETH and XRP prices get displaced in equal measure.
The crypto asset is seeing an increase in institutional investors’ days before 2020 halving, which is an indicator the asset might see a bull rally very soon. With the halving block reward affecting the market supply negatively, the price is bound to rise to offset the miners mining cost.
Bitcoin (BTC) Price in Relation to Regulatory Actions
As most people get to searching for bitcoin halving, one study has shown that Bitcoin price volatility increases in response to news of clear regulation. This is according to the Bank for International Settlements, which thinks that crypto prices respond well to clear regulation, however, they drop when governments issue bans.
The report suggested:
“At the current juncture, authorities around the globe do have some scope to make regulation effective.”
“Why do news events about national regulations have such a substantial impact on crypto assets that have no formal legal homes and are traded internationally? Part of our interpretation is that crypto-assets rely on regulated institutions to convert regular currency into cryptocurrencies”, concluded the paper.