Binance CEO said the Bitcoin price has not yet adjusted to the imminent halving event.
Changpeng Zhao indicated that the world’s largest cryptocurrency will gain more momentum in the near term.
He added that the halvings have had a significant impact on the Bitcoin price. However, the CEO clarified that historical events do not necessarily project future circumstances, but said miners would spend nearly twice as much to mine one currency.
The halving, which is expected to take place in May this year, could change the price of Bitcoin forever. This event has already taken place twice before.
Zhao also said the having would result in less inflation, which should push the BTC price.
Moreover, he said this major event would increase the number of crypto users, stating:
“The demand side is increasing, the supply side is decreasing.”
Nevertheless, Zhao forecasts an obstacle that would keep the BTC below $10,000 level for a while, adding:
“There are psychological barriers around nice round numbers. So 10,000 is a very nice round number, so […] the price will fluctuate back and forth around that a bit.”
BTC seen hitting $20,000 in next months
Cryptolydian earlier reported analysts as saying that BTC may hit $20,000 in the coming months.
In late 2019, crypto traders noticed similarities between the BTC performance in 2019 and that seen from 2017 to the end of 2018. During that period, there was a fakeout that failed to boost the upward trend. In addition, there was a downward triangle that broke down to push prices down.
Analyst Financial Survivalism was also more bullish on BTC, expecting the cryptocurrency to reach $20,000 in early July, citing strong technical factors and the imminent halving.
Think tank Fundstrat stated when the BTC breaks through its 200-day moving average, its average gain over six months will be 197%. Thus, it would move far above $20,000 by July or August.
Over the last 24 hours, BTC has dropped 6.49 percent to $9,518.57.