December 3, 2020

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Technical Analysis: [BTC / USD] CAUTION! Changing halving date, how does it affect Bitcoin?

2 min read
Technical Analysis: [BTC / USD] CAUTION! Changing halving date, how does it affect Bitcoin?

 

Bitcoin started with a 30% upswing in 2020. It is the best start of the year in the last 6 years. Halving shuffles the cards and now it seems shuffling the date.

 

[BTC / USD] in 2020 to the current value + 31.71%

Halving on Bitcoin has been extended by 1 day and only for 2020. As for halving and block utilization, 1 block is extracted once every 10 minutes. To extract a block in 10 minutes, the difficulty must be set to match the computational power of the millions of ASIC mines to a given hash. But what happens if speed increases? Deviation! And that’s exactly what happened right now. 10 minutes per block is an estimate with simultaneous connection of miners to the network, but if it happens that the miners are added to the network or vice versa, , 10 minutes can be 11 or 9. The block will not be exhausted in 10 minutes but, say, 11 minutes, but the difficulty will not to be adjusted. Approximately once every 14 days, the algorithm checks how often blocks are mined and, if mined faster than 10 minutes, adds on difficulty. Conversely, when blocks are mined on average in less than 10 minutes, the difficulty adapts. The halving date can thus change and the speed can be adjusted. Halving occurs at a block of 210,000 and the reward for a busy block is reduced from 12.5 BTC to 6.25 BTC per block. We are currently working on a 210,000 block utilization on May 12, 2020. For our readers, we have a countdown link where you can watch it online:

halving countdown

 

Many confuse the current ATH on Bitcon hash rate with mining speed respectively. by halving shifts by half a year and so on. or the price for BTC. Except for minor variations, it does not change and it is still exactly every 4 years. Now the halving had shifted a day. However, the number of miners involved in the network is increasing. Hash rate can grow also thanks to more powerful new ASIC miners, which are improving (even more expensive) every year. We bring you also hash rate chart.

 

Technical Analysis: [BTC / USD] CAUTION! Changing halving date, how does it affect Bitcoin?

 

Pattern cup and handle

We are currently seeing an ascending channel on Bitcoin. We opened 2020 to $ 7,700, the bottom of the 6-month channel was $ 6,440. From that moment Bitcoin became bullish. The situation is reminiscent of the Cup and Handle pattern. The first part resembles a round bottom, the same pattern is on Litecoin, but we can assume that it will turn into a cup and handle.

 

Technical Analysis: [BTC / USD] CAUTION! Changing halving date, how does it affect Bitcoin?

 

Support

We see the closest support at $ 8,700, if broken, it is possible that Bitcoin will drop to $ 8,200, where we last bounced. We created a new high low, so Bitcoin could move upwards, indicating a bullish trend.

 

Resistance

We are still in the $ 9,100 – $ 9,550 resistance band. If we break it, we can grow to $ 10,300. I personally expect the growth, so I drew it into the expected pattern.

 

Thank you for taking the time to analyze and review the market today.

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