Bitcoin had a really good first half of 2019 and a much worse second half of the year. Nevertheless, in the scale of the whole past year, it is one of the most successful investments. In the cryptic Internet, the forecast that just around the corner there is another boom lurking. The signal that announces it is to be a halving bitcoin coming.
The quotations of the most popular cryptocurrency from last year show that it has found strong support in the range between 6000 and 8000 thousand dollars. This level was a big support for bitumen for a really long time in 2018, but by the very end of 2018 it had already fallen. The flagship of the cryptocurrencies market returned in a triumphant march above it. This is the first half of 2019, when the price of bitcoin rose to a level that is close to $14,000. However, the last six months are again a very strong downward trend, and now the market leader has sat down similarly on previous support.
The announced halving is approaching
But before we deal with the story, we should get to the halving phenomenon. This is one of the characteristics of bitcoin. The most important crypto is that it is excavated (when computers or dedicated devices that are called excavators of complicated mathematical problems). Among other things, it is characterized by the fact that its supply is limited to 21 million pieces. This cryptocurrency differs from traditional currencies (called fiat in the industry).
Will history repeat itself?
The reward for digging up a bitcoin itself is falling, and the difficulty of computers solving tasks is bound to increase. Thus, if the rate of bitcoin itself were to remain unchanged, the value of the reward for miners would decrease, thus limiting the very popularity of digging for virtual currency.
The rate of bitcoin should therefore increase, so that the decreasing rewards cover the price of increasing equipment, energy, as well as the time needed to excavate the entire block. This is the theory that all investors who predict the next boom in bitcoin are based on. This is confirmed by the historical course of the bitcoin chart.
In the cryptographic internet you can find a suggestive chart. It divides the quotations of the bitcoin so far into exactly three periods with two divisions of bitcoin marked at times. At each of these three periods, several parts of the bitcoin’s own cycle are marked. First we deal with the bull market and then with the bear market. Then there is the phase of so-called accumulation and then the expansion of the bitcoin price. Sometimes we even have to deal with a reaccumulation.
Surely in the chart our attention can also be drawn by completely different observations. Each of the periods of bitcoin price increase in the so called “split period” lasted for about two years, while the periods of decline alone will last about a year. At the same time, the price of bitcoin at megahoses of both of them was lifting the price of bitcoin to some 83%.