Chinese new year also known as the lunar new year is coming up tomorrow – 25th January and the festival will last to 8th February, about 15 days in total. China is responsible for 9% global bitcoin trading volume, so we might see some slowdown in trading volume in the next two weeks.
How Bitcoin performed during Chinese NY holidays historically?
2016
Date: 8th February
2016 was the last halving year for bitcoin, Bitcoin dropped around 5.8%, 4 days prior to the Chinese new year, but price started a rally during two weeks of Chinese new year holidays. Bitcoin recorded 21.5% growth during holidays.
2017
Date: 28th January
2017 was the year when bitcoin reached 20000$ mark. Bitcoin dropped around 2.5% before the Chinese new year but recorded 18% growth during holidays.
2018
Date: 16th February
2018 was one of the bearish years of bitcoin history when price found the bottom at 3200$. Interestingly, bitcoin jumped around 33% before Chinese new year, but dropped about 8% during holidays.
2019
Date: 5th February
2019 was the year for sideways price movement for bitcoin. Bitcoin dropped around 2% before the Chinese new year but jumped above 7% during holidays.
What to expect from Chinese NY 2020?
2020 is the halving year for Bitcoin, Halving will take place in May. Sentiments are bullish after bitcoin jumped in value above 30% since the starting of this year. Bitcoin’s price has dropped around 10% in the last few days, and the Chinese new year is coming up tomorrow. If we take last having as a historical reference than Bitcoin price should rise in value during holidays.
Let’s see how technicals are looking for bitcoin right now?
Bitcoin is currently trading at 8327$ on Bitstamp exchange.
There are three major support levels to keep an eye on:
8200$ – which is a 21Moving average support.
8000$ – which is a 50 Moving average support.
7700$ – Major and key support, which is also a rising channel trendline support.
I believe, Bitcoin will soon bounce from any of this support and price will head to 8950$ first – which is also a CME GAP to be filled. I am expecting Bitcoin to break above 9000$ in the next two weeks during Chinese new year holidays.
[bctt tweet=”How bitcoin can perform during chinese new year holidays this year”]
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Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.
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