Reasons for the Static or Low Movement in the Price of Bitcoin After Halving

Last Friday, the fourth bitcoin halving took place and this halving was very much anticipated by many crypto traders in the crypto ecosystem. This halving reduce the block reward for minus of Bitcoin from 6.25 bitcoin to 3.125 bitcoin and this halving is met in place to reduce the number of newly created bitcoins in the market.

This halving event happened during a conflict in middle East which disrupted the increase in the price of bitcoin as anticipated towards its all-time high. This was the market analysis before and after.

Before the halving, bitcoin price was hovering around $60k to $62k. After this halving, it was still hovering around this price and remained almost static. This pump was expected after the halving but didn't come through.

The price of Bitcoin experienced a slight increase on Friday 20th and then bounced back from a dip below support levels that are crucial. This was a result of the report of Israel strike against Iran which placed a risk sentiment at attention remained fixed on the halving events.

Bitcoin price experienced just 1% rise in a 24-hour time frame. It dropped as low as $59500 when the report of the Israel strike image on Friday morning. This sentiment made a lot of Traders shift towards assets that are safer immediately after the strike. What cause this strike and how did it happen?

Report shoes that linked explosions with sent a cross Iran on Friday to drone attacks by Israel. The incident caused escalation in regional tensions which raised concerns about a conflict in the middle East. Bitcoin managed to gain a support level of $60k to hold temporarily. 2 days after the halving, the price of Bitcoin reached $65k ranging from $65k-$66k. A major pump and dump were actually expected in the market but because of all these factors, the surge was an imagination and not a reality.

These sentiments that are different made many traders uncertain of movement in the market. They thought of waiting for a 2% pump to know their fate. There was an up and down movement in the market that made lots of Traders money. It followed a pattern of increasing from $66k to $67100. It will move to that point and they will close their positions and then open a sell position and set a take profit at a price of $66100. They followed this movement for almost 5 hours.

I wasn't in a trade though I heard the news. As of yesterday, the price of Bitcoin couldn't hold any longer in this support level. It's experienced a dump from $67500 to $62400. Dose with small margins with liquidated of their trades. The market is now red and it is very risky to place trades on bitcoin as the coin is unstable leading many into confusion.

Many are expecting more dumbs in the market as the asset's support level was too weak to hold it in that price. This was the market analysis of bitcoin yesterday. Currently, bitcoin experienced a pumped from $63200 to $65300 of which many thought it would start pumping as expected but later dropped to $64k and is still hovering around this price.

The sentiments in the crypto market is very debilitating. Many thanks Bitcoin will dump while others think it will surge. The screenshot shows a trader in the market narrating his sad liquidation in the market today. From his statement, he said he had held this trade on a sell thinking bitcoin will dump. He was liquidated of all his money and he learnt an important lesson from trading which he shared with us.

If you're a crypto trader, this is not the time to trade blindly as things are unfolding and changing. The market can be a probability though it's advisable to trade with caution using a small leverage and a capital you're comfortable with to avoid liquidations. Your aim is to protect your capital as we wait to see what the market has for us in a few days.

Disclaimer :Any financial and crypto market information provided in this post was written for informational purposes only and does not constitute 100% investment advice. It's just basic knowledge every crypto trader or investor should have

All screenshots from my binance account