Is a secret weapon shooting the Bitcoin price up?

Analysts tumble over each other to provide information about how the Bitcoin's course will develop. According to more and more of these seers there is a secret weapon that will take the course of the Bitcoin to new heights. Of course we like to reveal what others want to keep secret, so we like to share the secret weapon.

Secret weapon for the Bitcoin course?

Indeed, the secret weapon of the Bitcoin is claimed by a growing group of analysts. They combine historical statistics and data on the approval of transactions on the Blockchain into a secret weapon. This secret weapon must bring the Bitcoin price to new heights between now and the end of 2020. We explain both steps.

Price increase Bitcoin based on blockchain

If transactions are made with Bitcoin, they are kept in a ledger (ledger) on various computers. Once in a while (for Bitcoin about 10 minutes) these transactions are approved by computer-solving complicated mathematical questions. The computer that registers the right solution first receives a reward for this. At this moment the reward is 12.5 Bitcoin per block. After mining of 210,000 blocks, this reward will be halved. According to calculations based on the current speed of mines, the next halving is expected in May 2020. At the time, this technique was deliberately designed to create scarcity.

Share price increase Bitcoin based on historical analysis

Analysts have discovered that this technique does indeed seem to work. With previous halves (for example, those of 2016), the price started to rise a year before the actual halving was realized. Subsequently, a further peak in the prices arose after the increase. If the historical analysis of the Bitcoin is put alongside the information about the coming halving, the Bitcoin price should rise from May 2019 until the moment of decommissioning, which is scheduled for May 2020. After that, the price should rise sharply. in the months after the halving. Analysts foresee a price increase to $ 20,000 at the end of 2019 and $ 50,000 at the end of 2020.

Is there really a secret weapon for the Bitcoin course?

On the basis of the analysis and the overviews, we can well imagine the idea. You can see an overview in the graph below.

In the graph, on 1 November 2012, 1 July 2016 and 1 May 2020, we see the moments of halving, with an exact one year before halving in orange. The blue lines show when a new highest course has been reached after the half-fin. The red line shows the indication when the new highest point should be reached, with the vertical line showing the date and the horizontal line indicating the price. If you follow the yellow line you will see the price movement. With the purple boxes you see how the price always goes after a halving from a low point to a high point and back again.

Nevertheless, it is going too far to set the course with a simple extrapolation. After all, after 2016 the market has entered a next phase of maturity. There are also ongoing developments that can influence these developments. Finally, the Bitcoin has a history of 'only' 10 years, which is very short to talk about historical patterns, let alone lawful developments. The saying goes not without reason: "Past yields do not offer any guarantee for the future."