Bitcoin Expert: Prepare mentally, $ 10,000 may take another 100 days to break

Bitcoin halving happened last night. The event that has taken place almost every four years in the past has sparked a chain of bullish events that has brought the asset to a new all-time high.

And while most proponents of cryptocurrency expect the cycle to repeat itself, a Bitcoin expert warns that it could take another 100 days to return to the previous peak at half of $ 10,000.

More mining capitulation could come, but it's as optimistic as it sounds

In a previous NewsBTC report, Blockware Mining CEO and hedge fund manager Matt D’Souza warned that extreme capitulation would likely halve after Bitcoin if assets continue to trade sideways.

The only way to prevent prices from falling as a result of the surrender of minors is if a FOMO rally breaks out in the coming days.

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$ 10,000 has acted as a "FOMO trigger" in the past, but the price of Bitcoin has made two failed attempts to stay above the critical level this year alone.

Since the bear market started, assets have traded very few weeks above this price. However, the next time Bitcoin stays above, it may be the last time the asset trades again at five-digit prices.

100 more days on the side possible before Bitcoin breaks $ 10,000

It can take another 100 days for Bitcoin before another $ 10,000 attempt is made, based on previous data. In the past, capitulation after half the period resulted in a 28% drop, followed by more than three full months of side trades before a breakout occurred.

A leading Bitcoin expert warns that crypto investors must mentally prepare for such a scenario.

During the 2016 halving, the price moved sideways for 9 days, then fell 28%, and it took 100 days to return to the price by half. Prepare mentally for effective cleaning and adjustment of difficulties while the protocol prepares all passengers for launch. pic.twitter.com/5dNcs0ZnJ1

– Preston Pysh (@PrestonPysh) May 12, 2020

However, this breakout sparked the next bull market and raised the price of Bitcoin to $ 20,000. It may be worth waiting for a break above $ 10,000 if the cycle starts again and the cryptocurrency is trading towards a new historic record.

Each half halves the BTC block reward that minors receive. The reward was reduced from 12.5 BTC to 6.25 BTC overnight, but the energy cost to add each new block to the blockchain remains the same until the difficulty decreases.

The difficulty only decreases when the miners capitulate and turn off their machines. This happens when profitability is lost and less efficient miners are forced to sell their BTC.

Each halving resulted in a purge of the least efficient miners who exert the highest selling pressure on the market. Although there may be another 100 days of this balance, the end result is extremely optimistic.

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With the less efficient miners on the sidelines, the more efficient miners keep their BTC to sell at much higher prices during the next surge in the bull market. But it is this holding process that seems to drive every bull market.