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Bitcoin’s firm 2020 uptrend has led many analysts to question what types of fundamental and technical events could help bolster its mid-term price action and propel the cryptocurrency higher, and naturally its upcoming mining rewards halving is one such event that is widely looked upon as being bullish.
It is important to note that the halving, which is slated to occur in early-May, will increase the cost to mine BTC, and as such the price of Bitcoin will have to increase significantly in order for miners to be profitable, thus disincentivizing miners to sell their BTC.
Bitcoin’s Upcoming Halving May Help Propel it to $15k+
Currently, Bitcoin is trading up marginally at its current price of $9,770, which marks a slight decline from daily highs of just under $9,800.
BTC’s firm uptrend has allowed the cryptocurrency to put a significant amount of distance between its year-to-date lows of $6,800 that were set in the early part of January.
It is important to note that some analysts have attributed the ongoing rally to pre-halving hype, as the event has historically been a catalyst for massive upwards momentum.
In the weeks and months preceding this event, analysts do believe that Bitcoin will see further upside, with George – a popular crypto analyst on Twitter – explaining that he believes BTC will target a near-term move to $10,200, with a break above this level leading to a sharp movement to $12,000.
“BTC 10.2k at least imo. Clean break above and I’ll be targeting 12k,” he said while pointing to the chart seen below.
10.2k at least imo. Clean break above and I’ll be targeting 12k. pic.twitter.com/ldX3wkY7Bv
— George (@George1Trader) February 7, 2020
This target would closely coincide with the projected post-halving miner profitability increase, which will require that one Bitcoin is worth between $12,000 and $15,000 in order for miners to be profitable.
James Todaro, managing partner at Blocktown Capital, spoke about this in a recent tweet, saying:
“For mining to remain profitable at projected hash rates for Q2 2020, the price of bitcoin must be $12k-$15k post-halving. Bitcoin hash rate has never dropped for longer than a few months before going on to reach new highs.”
For mining to remain profitable at projected hash rates for Q2 2020, the price of bitcoin must be $12k-$15k post-halving.
Bitcoin hash rate has never dropped for longer than a few months before going on to reach new highs…https://t.co/ASWfpaW0d2 pic.twitter.com/aBiLRL69xu
— James Todaro (@JamesTodaroMD) February 7, 2020
While considering this fact coupled with Bitcoin’s present technical strength, it is appearing to be increasingly likely that the crypto will soon see some significant upside.
