Skip to content
Buzz Blockchain
Menu
  • Home
  • Bitcoin
  • Ethereum
  • News
  • Currency
  • Blockchain
  • Interview
  • Press Release
Menu
Bitcoin: how to play the long game?

Bitcoin: how to play the long game?

Posted on August 26, 2020

Back in May 2019, Bitcoin started at $4000 and came close to $14000 however the momentum could not be sustained and there was a subsequent fall in the price. There were signs of a bull run in the first half of 2020 in anticipation of the upcoming halving and the event acted as a potential catalyst. What was unexpected, however, was the crash of the world economy and a rapid surge in Bitcoin prices post-pandemic.

Bitcoin has made a recovery from the post halving drop and is showing signs of pushing higher. Comparing the price to May 2019, we see that there are several key differences like hash rate, Bitcoin’s market dominance, and the correlation between Bitcoin and Gold. These differences build a case for the bulls.

Bitcoin’s hash rate is at 119.39M TH/s, a year ago it was 72.14M TH/s. What’s more, Bitcoin has entered a cycle where price and hash rates are increasing simultaneously. Every halving cuts out less efficient miners and this halving has reduced it to the most efficient ones. This affects the price of Bitcoin on spot exchanges as mining activity has a knock-on effect on price. Miners do not find it profitable to sell their cryptocurrencies for lower prices, and they are the ones bringing liquidity to most spot exchanges.

This difference in prices pre and post halving is examined better in a market cycle. Bitcoin has two cycles and though they are not periodic to each other they correlate with each other. Bitcoin’s algorithm and hash rate affect the technical cycle, and various factors affect the pricing cycle.

To examine where Bitcoin is in the current cycle and count drops, refer to this Wall Street Cheat Sheet.

It is not always easy to predict the position in a cycle, as two market cycles are never exactly the same shape and don’t occur in the same magnitude. So comparing price charts for the Bitcoin bull rally (2017) and now may not be the best way. Instead, counting drops against several factors in this market cycle is a better approach.

Counting the drops

The first drop in the market cycle pre-halving came on Feb 25, 2020, when the price was $9593. The price further dropped on March 16, 2020, hit $5238. Post halving the narrative changed and momentum in Bitcoin price increased further with smaller drops.

Additionally, it overlaps with the time when Grayscale raised $900 M for crypto products and these funds are locked in till October 1, 2020. This gives an assurance that another significant drop may not occur until later in 2020, however smaller drops are anticipated.

The current market cycle may seem bullish in one look, as the price drops are fewer and smaller in magnitude compared to post 2017 bull run, however, the google search trends for Bitcoin paint a different picture. Search volume for Bitcoin was highest in Q4 of 2017 and early 2018, however, it failed to hit that peak post halving in 2020.

The increase in institutional interest and retail buying has kept the price stable at a bullish level and miner capitulation has hit historic market bottoms. This indicated a bullish trend in the long term.

Digging into market data and trends leads us to the above conclusions. Keeping an eye on Bitcoin’s price and BTC sell-side orders on crypto-crypto exchanges is recommended in the short run.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • NexulonAI ($NEX) Joins Forces with Industry Leaders to Strengthen DeFi Ecosystem
  • FG Capital Advisors Opens Private Round for Tokenized Carbon “Stream” Financing – Pre‑Launch SAFEs Now Available
  • TUA Deploys Responsive Compute Nodes for Cross-Chain AI Alignment
  • Acxwp Crypto Obtains U.S. MSB License, Fully Safeguarding Trading and Fund Security
  • AstralX: Connecting traditional finance and crypto markets, redefining a new model for global asset trading
  • Atua AI Refines Modular Control Systems to Improve AI Orchestration
  • UPNEWS Launches to Revolutionize News Consumption with Trust and Transparency
  • Atua AI Enhances Microservice Intelligence to Support Complex Automations
  • FurGPT Develops Feedback-Driven AI for Interactive Companion Customization
  • Imagen Network (IMAGE) Taps Grok AI to Drive Scalable Personalization Across Decentralized Social Systems
  • Angel Token Presale is LIVE!
  • Next big AI agent launch set for Friday 18th of July on Creatorbid: $YUUKI – The crypto casino governor
  • Atua AI Deploys Context-Aware Modules to Support Smarter Integration
  • Atua AI Builds Automated Data Pathways for Intelligent Web3 Execution
  • $BARF on Solana: 1 Million Permanent Blockchain Imprints Make This the Most Unstoppable Meme Ever
  • ​​$Doughge: The Meme Coin That’s Risen – Now It’s Yours
  • Atua AI Powers Developer Access with Smart Pipeline Integration Features
  • Atua AI Strengthens Backend Stability with Multichain Compute Layers
  • 7 Reasons Why ZF Markets Deserves a Place in Your Portfolio
  • Atua AI Optimizes Agent Coordination for Decentralized Workflow Distribution
  • From Junk Bonds to Digital Credit, How XMG Fintech, USXM Stablecoins and PDCNs Are Redefining Financial Engineering
  • DeepSteak: A Well-Done Memecoin Built on Truth, Not Lies
  • Atua AI Boosts Multi-Protocol Compatibility with Lightweight Task Models
  • After Infini Exit KAST Faces Questions Over Points Based Cashback
  • Alaxio’s Strategic Partnerships: Building the AI-DeFi Powerhouse of the Future
  • vANY Emerges from Anyswap Rebrand Amid Industry-Wide Compliance Pressures
  • Imagen Network (IMAGE) Secures $160M in Bitcoin to Build Decentralized AI Infrastructure at Scale
  • Atua AI Rolls Out Smart Automation Sync for Multi-Agent System Collaboration
  • The Schwartz: Where Memes Meet Mission on the XRPL
  • FurGPT (FGPT) Powers Cross-Platform Recognition Tools for Smarter Virtual Companion Sync
  • Atua AI Builds Modular AI Control Stack for Scalable Decentralized Development
  • Atua AI Enhances Resource Allocation Intelligence to Optimize Protocol Operations
  • Colle AI Enhances Creator Profiles With Configurable Publishing Infrastructure
  • AGII Introduces Secure Logic Shards to Streamline Autonomous Web3 Execution
  • Atua AI Launches Blockchain-Agnostic Computation Engine for Seamless AI Scalability
©2025 Buzz Blockchain | Design: Newspaperly WordPress Theme