Bitcoin Price ‘Floor’ to Jump to $7-8K Post Halving

Tony "The Bull" Severino

5 years ago

3 mins read

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Bitcoin price recently plummeted to under $4,000, bouncing off what may believe is the absolute “floor” for the first-ever cryptocurrency.

However, according to data from a top crypto industry analyst, the price floor of Bitcoin could jump to as much as $7,000 to $8,000 immediately after the halving takes place this coming May. But what exactly does that mean for the leading cryptocurrency by market cap?

Analyst: Bitcoin Price Floor To Jump To $7,000 to $8,000 Following Halving

Bitcoin’s halving is currently set to occur on May 13, 2020 – just a little more than a month away.

The event sees the block reward miners receive for validating each new Bitcoin block before it’s added to the blockchain, slashed in half, lowering the reward from 12.5 BTC to just 6.25 BTC.

When this happens, the cost of production immediately rises by double.

And because miners are responsible for the largest portion of sell pressure in the market – as a result of these miners selling BTC to fund operations – when the cost of production rises, they often wait until prices catch up with production costs and stop selling their holdings.

The lack of sell pressure causes prices to grow quickly, resulting in what many crypto analysts refer to as a “miners bottom” – or an absolute price floor to which Bitcoin price won’t trade below because if it does, miners will stop selling and prices eventually stabilize.

And according to data, that miner’s bottom is set to rise to over $7,000 to $8,000, the moment the halving takes place next month.

The mining cost per BTC, via its interaction with sell pressure, historically has resulted in the BTC floor price. The floor post-halvening is around $7-8k (analysts closer miner OPEX and CAPEX may have a better picture). Also consider pricing effects above this floor.. /1 https://t.co/6NtTHhbrvq

— Willy Woo (@woonomic) April 6, 2020

Started From the Miner’s Bottom Now We’re Here

It’s been a rough two and a half years since Bitcoin price reached an all-time high record of $20,000.

Since then, the asset went through a long, arduous bear market that caused the first-ever cryptocurrency to plummet to its current “bottom” of $3,200.

At that time, the cost of producing each Bitcoin was roughly $3,200, setting the floor as to how far Bitcoin could in theory fall.

When Bitcoin price collapsed to $3,800 this past March amidst the coronavirus outbreak, it fell far deeper than the cost of production, which could be in part why Bitcoin was able to rally by over 80% in the days following the collapse.

If Bitcoin’s price floor is soon set at between $7,000 to $8,000, it may not be too long until the leading cryptocurrency by market cap never again trades below 5-digit prices. And while $10,000 failed to incite FOMO the last two times since the bear market began, the third time could be the charm that when combined with the halving, helps propel Bitcoin price to new highs.

Featured image from Shutterstock

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.