A few hours ago, Bitcoin was able to surpass $10,000 once again after being traded below $7,500 for a short period.
After this massive price increase of over 40% in just a few hours, analysts consider it is possible for Bitcoin to reach $20,000 before its halving event.
Bitcoin Could Surpass $20,000
The whole cryptocurrency market has experienced a massive expansion during the night that allowed several cryptocurrencies to surge by over 20%.
Many analysts already consider Bitcoin has already left the recent bearish phase and could move towards a new high in the coming months.
Back in June 2019, Bitcoin was able to move above $13,700 for a brief period allowing investors to believe the most popular cryptocurrency was going to surpass its previous all-time high.
For example, the cryptocurrency analyst Crypto Michaël wrote on Twitter that Bitcoin could eventually be traded between $17,000 and $20,000 before its halving event that is expected to take place in May 2020.
Bitcoin rewards for miners are going to be reducing by 50% in May 2020. In this way, miners will receive 6.25 BTC rather than 12.5 BTC every single time they find a block.
This is a bullish event for Bitcoin because there will be less selling pressure from miners. If there is an increase in the demand of Bitcoin, it is expected for the price of the cryptocurrency to react faster than in previous bull markets.
Furthermore, the analyst explained that the 100-week MA was tested and it held the selling pressure, this is similar to what happened in 2016 before Bitcoin started a new bull market.
✅ 100-Week MA test completed and held, similar to beginning 2016.
✅ Back above 200-Day MA & EMA, important indicators.
✅ Holding trendline as well.
2016 period and now are still comparable in which targeting $17,000-20,000 prior to halving is realistic. pic.twitter.com/TPrQwJFxBX
— Crypto Michaël (@CryptoMichNL) October 26, 2019
At the same time, he said that Bitcoin price performance now can be compared to the one experienced by the leading cryptocurrency back in 2016.
One of the main reasons why Bitcoin surged as it did during the last hours is related to China embracing blockchain technology.
China’s President Xi Jinping said it is important to consider blockchain as an important breakthrough for independent innovation of core technologies.
In addition to it, he mentioned that they should increase their investment and accelerate the development of blockchain technology.
At the time of writing this article, Bitcoin is being traded around $9,200 and it has a market capitalization of $165 billion. A few hours ago, Bitcoin was traded above $10,000.