Bitcoin price could rise in weekend markets

Bitcoin prices have traded in a tight range for weeks after a wild plunge and recovery. But the all-important halving could see prices rally further.

Bitcoin’s modest finish hides mid-week bull-bear battle

Bitcoin could be set for a breakout in either direction in the coming weeks as traders stake out their position ahead of the scheduled halving.

The BTC/USD cryptocurrency finished the week’s trading around $7063.12, which was only 0.4% above its opening price on Monday of $7034.78.

While Bitcoin has been trading in a tight range lately, by its standards, this doesn’t tell the full story.

The leading cryptocurrency was on a downward trajectory throughout the beginning of the week until Thursday’s session. Bitcoin touched an intra-session low of $6485.28, a 7.8% dip for the week.

That’s when the cryptocurrency started to rally, ending the session at $7164.11 before giving up a little ground on Friday.

Since then, Bitcoin has jumped around between its Thursday and Friday closing prices in early weekend trading, suggesting the bulls have the ascendency going into weekend trading with IG.

Outside of bitcoin, the broader cryptocurrency market was mixed this week. Rival coins like Ethereum jumped 5.4% this week to $170.83, while Ripple shed 1.2% to $0.1897.

Halving looms for Bitcoin traders

Since its creation, advocates of Bitcoin have compared the cryptocurrency to ‘digital gold’, with some investors viewing it as a safe haven asset during times of market instability.

Except it’s more volatile than gold and during a market route, that’s doubly so.

While Bitcoin has been trading in a relatively tight range – between $6000 and $7000 – since March 20, very much in keeping with this week’s session, it was a wild ride the week before.

Bitcoin finished 12 March around $7938. The cryptocurrency touched $3908 in the next session before finishing at $5446. That’s a 50% dive, backed up by a 39% recovery rally in a single session.

But the upcoming Bitcoin ‘halving’ mean traders will likely be anticipating a surge in the price.

A Bitcoin halving is when the reward for mining new blocks is halved, which means miners receive 50% fewer bitcoins for verifying transactions. Bitcoin halvings are set to happen every 210,000 blocks – about every four years – until the maximum supply of 21 million Bitcoins has been generated by the network.

While Bitcoin confounds a lot of traders in the same way that gold does, lower supply means higher prices in any market. For reference, the next Bitcoin halving event is scheduled to take place around 18 May.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.