The crypto market is taking a beating on Tuesday, with the vast majority of all cryptocurrencies in the red.
Bitcoin is down 2.61% at $6,752, according to COIN360. Ethereum is down 4.97% at $127.93, XRP is down 6.71% at $0.1932, Bitcoin Cash is down 6.06% at $185.37 and Litecoin is down 2.48% at $38.95.
Veteran crypto analyst Tone Vays says he believes the best time to buy Bitcoin in years is approaching.
In a new episode of Trading Bitcoin, Vays, who has been notoriously bearish on BTC throughout 2019, says he thinks BTC will hit a bottom before the next halving – which is set to happen in May of next year.
“If you prepared for this BTC low, it should be the best time to ‘buy the dip’ for years to come…
I believe that the low for this current down cycle since June will take place before the halving. Not after the halving. The most logical place for me right now as to where that low is going to be is somewhere between $4,000 and $5,000.”
Vays says Bitcoin’s climb to nearly $14,000 this year shifted his analysis and left the door open to two likely outcomes moving forward.
“By going as high as $14,000, we actually opened up two possibilities. We opened up the possibility that we could have a significantly higher low than $4,500, being in this $6,000 vicinity, which we have pretty much almost hit.
And the other possibility that we opened is another 80% correction down from that high, taking us down to $2,800. I think the $2,800 possibility is less likely than a higher low. And the main reason why I believe the $2,800 possibility is less likely is because of the halving. The halving is a fundamental event. But it is a known event. It’s a measurable event. You know exactly what day it is going to occur.”
The halving will cut the reward miners earn for processing transactions in half, further slowing the supply of new BTC entering the market.
Fellow analyst Rekt Capital also believes the coming event is key. Looking at BTC’s price history, the trader tells his 24,000 followers on Twitter that BTC’s end of the year retreat is typical.
“In the year prior to the Halving, Bitcoin tends to experience:
• A 40%+ correction
• An uninteresting Q4
This current retrace is the deepest to have occurred prior to the halving. But BTC – for the most part – is still following through on its historical tendencies…
That said, the months (2020) prior to the halving are crucial. History suggests that a strong BTC recovery followed by yet another retrace all lie ahead in the New Year prior to the halving.”
With about five months to go, the halving is emerging as a hot-button issue and there is plenty of skepticism on its impact.
A recent viral tweet from Morgan Creek Digital co-founder Jason Williams pours cold water on the notion that the halving will change Bitcoin’s trajectory. Williams says he believes the event is likely already priced in.
Unpopular Opinion –
Bitcoin halving in May 2020 won’t do anything to the price. It will be a non-event.
— Jason A. Williams ? (@JWilliamsFstmed) December 1, 2019