Sideways price action post Halving is the norm for Bitcoin...

Some people think Bitcoin is somehow broken because it hasn't mooned yet, they obviously haven't been paying attention...

Bitcoin has been trading in a tighter and tighter range for much of the past 2 months.

In fact, we are seeing volatility (or should I say a lack there of) at levels not seen in years...

This lack of volatility has lead some to question whether bitcoin is going to repeat its previous post halving parabolic rallies...

While it remains to be seen whether that will happen again a third time or not and I think it will, the current price action certainly isn't a cause for concern.

In both previous instances, Bitcoin has tended to see sideways price action following its halvings...

In fact, things look very much currently like they have previously after a halving.

Check it out:

(Source: https://twitter.com/Pladizow/status/1282669042776629251)

Over the last 10 weeks we have traded within an 11% range.

Over the last 6 weeks, it's been significantly tighter.

Based on the previous halving, we could basically see another 5 weeks of this mostly sideways activity and it wouldn't be anything different from what we saw after the last halving.

That sure puts a dent in the bitcoin's broken argument doesn't it?!

The longer the base, the higher in space

There is an old trading/investing adage that goes like this...

"The longer the base, the higher in space"

It means that the longer a price goes sideways, the more potential it has for a bigger and longer sustained move higher.

The reason for this is that a new trading range is formed where many participants have bought and sold. It takes a significant event to move the price out of this range.

When that event does happen, the move is much more likely to hold those gains than had the base been realtively short with few participants.

The other thing to consider is the fact that altcoins often do well when bitcoin goes sideways...

And as you have seen, we have had our own mini altseason as of late, though HIVE hasn't participated much yet.

Given both of those contexts, and especially for HIVE's sake, I'd like to see bitcoin go sideways for as long as possible! :)

Stay informed my friends.

-Doc

Posted Using LeoFinance