Bitcoin’s (BTC) price has been showing extreme levels of volatility as it consolidates under a key level of $10,000. The price dropped to as low as $8,100 on May 11, merely a day before the highly anticipated mining reward’s halving.
Following the 20% drop, traders remain divided on where the Bitcoin price would go next, with some traders believing that BTC could immediately see an upsurge to the $14,000 to $15,000 resistance area.
Historically, when Bitcoin’s price saw an extended rally, it went past key resistance levels with ease. For instance, it took BTC 28 days to increase from $8,000 to $20,000 in December 2017. In June 2018, Bitcoin’s price rose from $7,500 to $14,000 in just three weeks. So, BTC’s price has the tendency to increase by a large margin in a short period of time, especially when met with huge demand from retail investors.
However, other traders foresee Bitcoin’s price testing lower support levels after its fall to $8,100. Given that Bitcoin fell post-halving in the last two halvings, technical analysts expect BTC to retest the mid-$6,000 region at the lowest.
Bullish scenario for Bitcoin post-halving
The primary bullish scenario following Bitcoin’s block reward halving is a breakout of a major trendline above the $14,000 mark, which dates back to 2017. In the past year, Bitcoin’s price moved within a large multi-year cycle established by its record high at $20,000 and its June 2019 peak at $14,000. Every time Bitcoin’s price got close to breaking out of the range, it was met with a fierce rejection.