Bitcoin’s Scarce Value
According to Bitcoin technical analyst “PlanB,” after the halving event, Bitcoin will become scarcer than gold and real estate. However, he believes that Bitcoin’s market capitalization may still remain below gold’s, despite its scarcity. Based on basic calculations, a BTC price greater than $500,000 is implied by dividing a $10 trillion market cap by 20 million coins.
Halving Gains and Market Capitalization
Historically, halving gains are recognized about a year after the event, so it is unlikely for there to be an immediate price pump in April. Additionally, for Bitcoin’s market capitalization to increase tenfold, a significant influx of fresh capital would be required. Currently, this seems unlikely given the current economic climate.
The Absolute Floor for Bitcoin
Referring to his S2F model and the Bitcoin 200-week moving average of $31,000, PlanB suggests that $31k might be the absolute floor for Bitcoin. He concludes that Bitcoin may never drop below this level again.
Bullish Pennant Pattern and Upside Potential
Analyst “CryptoHamster” identifies a bullish pennant chart pattern in the short-term. While there is a threat of a downside breakout, an upswing could potentially push prices to $45,550.
An Upside Move on the Horizon?
Fellow analyst “Rekt Capital” hints at an upside move for Bitcoin, stating that it may invalidate its Bearish Divergence with a break of its RSI downtrend.
Crypto Market Update
The overall crypto market has been relatively flat in the past 24 hours, with a total capitalization of $1.71 trillion. Bitcoin is currently trading around $43,000 and appears to be heading towards resistance at $42,000. Ethereum has dipped below $2,300, while most altcoins are in the red.
Hot Take: Bitcoin’s Potential Value
Bitcoin’s scarcity and potential market capitalization raise the possibility of its price reaching new heights. While there may not be an immediate surge after the halving event, the long-term prospects of Bitcoin remain optimistic. With ongoing developments and market trends, it is crucial to monitor Bitcoin’s performance closely as it continues to establish itself as a significant asset in the financial world.
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