- Bitcoin price recovers from the dip to $8,800; all eyes focus on $9,000 and $10,000 ahead of the halving.
- Dan Morehead, the CEO of Pantera Capital predicts Bitcoin rally to $500k by August 2021 if halving history repeats itself.
Bitcoin price continues to face increasing selling action following last week surge to $9,500. Although BTC/USD dived to a low of $8,400 following the spike, recovery already took place with the price resting $9,200 on May 3. Monday’s lower correction found support at $8,530, paving the way for gains towards $9,000. However, the upward movements have been capped under $9,000 and Bitcoin is seeking support at $8,800.
Marginally above the prevailing market value ($8,871), Bitcoin is facing a growing resistance at the 50 Simple Moving Average (SMA). On the downside, immediate support is provided by the 100 SMA in the 1-hour range. It is apparent that gains above the 100 SMA would allow a smooth sailing above $8,900. In the near term, all eyes are glued on $9,000 while investors are focused on Bitcoin trading towards $10,000 as halving approaches.
The developing bullish momentum is supported by the Relative Strength Index (RSI). The indicator has slowed down the retreat from the overbought region (70) and signals an incoming upward movement. At the same time, a growing trading volume suggests that more buyers are joining the market with an aim of pulling Bitcoin above $9,000. Still on the upside, the descending trendline resistance on the 1-hour chart must be broken for a clear path above $9,000.
BTC/USD 1-hour chart
Bitcoin Heads For $500k: Pantera Capital CEO
Dan Morehead, the CEO of Pantera Capital, in a letter addressed to investors predicted that Bitcoin has a 50-50 potential of rallying massively to the extent of hitting levels of $500k by August 2021. Morehead in the letter examined Bitcoin price performance in the 12 months before the halving this May while comparing the same to other assets such as gold, oil and venture capital. According to Morehead, “if the new supply of bitcoin is cut in half, all else being equal, the price should rise.” He also added:
If history were to repeat itself, bitcoin would peak in August 2021 – at $533,431. Obviously that’s a big IF. That price sounds ludicrous…. Just sayin’ that there’s more than a 50-50 chance bitcoin goes up – and goes up big.