In the last two years, the months of November and December have been key to the market. Back in 2017, we saw the crypto market rally hard and reach all-time highs. Last year, the mood was different as the market shifted gears to mark a major low.
For Bitcoin, in 2017, the digital asset was in the highs of $19,000 and in 2018, in the lows of $4,000. A couple of years back, in 2013, a similar trend was observed. From November to mid-December, Bitcoin climbed from $200 to reach $1,000. Now, in mid-November, the crypto community is anxiously expecting a major move. But, no one is entirely sure where to, upwards or downwards.
At the time of writing this, the market is somewhat bearish. Most coins are in red and as we reported earlier, nearly $6 billion has been wiped out. But this is not a big worry for a majority of the bulls.
Such moves have not in the past stopped Bitcoin from making a full turn around and rallying. The market is almost irrational with sudden spikes and unexplainable slumps. In the weeks to come, many anticipate that the market will make a significant move upwards to mark new highs.
Bitcoin Difficulty Adjustment Could Trigger Next Bullish Phase
Many of the Bitcoin bulls expect a breakout in the next few weeks that sees Bitcoin retest year highs of $13,000, to mark the next major resistance. Others, however, believe the next major move will come with the next Bitcoin halving. This is now less than a year away and promises to nudge Bitcoin to new highs.
The halving although its effects expected in full in 2020, is already in play as one analyst has pointed out. Analyst PlanB has illustrated how 9 years of Bitcoin’s difficulty adjustment has affected prices.
And historically, BTC starts climbing after the difficulty is negatively adjusted. He estimates that the next Bitcoin difficulty adjustment will happen on November 21, marking the beginning of a new bullish phase.
If a bullish breakout is triggered in the coming weeks, we could see the market and Bitcoin in particular soar at an unprecedented pace fueled by its halving.