Can Bitcoin See a Major Breakout Before Next Month's Halving?

It's no news that the much anticipated Bitcoin halving, the biggest crypto event worldwide, is just a few weeks from now. Precisely, it's estimated to take place around May 11th 2020. Historically, the Bitcoin halving is significant because it has always correlated with surges in price in the accompanying months.

For instance, the last Bitcoin halving took place on July 9th 2016 and Bitcoin saw a new all-time high about a year and a half later by December 2017. The reasoning is that a typical Bitcoin halving event cuts the block rewards by half, reducing supply and creating scarcity that in the long run positively drive price.

As this year's halving event draws near, it becomes necessary to ask whether its anticipation can at least positively impact price in the short run. Although Bitcoin has been frantically struggling to decisively break out above the $7k price mark but it has been met with much resistance each time. We continue to see pull backs to the $6k range and then a renewed effort at breaking out again.

I personally believe that the price action is a good sign if we are to consider the economic crisis in the world today due to the outbreak of COVID-19. Realistically, Bitcoin is supposed to have tanked to new yearly lows had it not been that an halving event is taking place in a few weeks from now.

The chart above shows the historical price movement of Bitcoin in all the previous halving till date. Each previous two halving events are marked by the long green vertical lines. A closer look at the chart clearly indicates a surge in price just before the halving and the bull run that follows the halving event over a period of time.

Therefore, it is very possible at this point to see some FOMO-driven buying wall as the halving event gets closer by the day. If that happens, it will be a good opportunity for a few persons to take some profits will waiting for the official start of the bull run.

So, can Bitcoin see a major price outbreak before the halving event taking place next month? Yes, is the most probable answer. Yet, time is the best judge.