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.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Sell
Buy
-
-
China 300
-
-

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

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets 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 spread betting and CFDs.

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

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.