The price of Bitcoin (BTC), the top-ranked cryptocurrency by market capitalization, has seen a spike towards $10,500 before the halving took place on May 11. However, the price of Bitcoin has been having problems since the halving and is currently showing more signs of weakness.
On the other hand, altcoins have been starting to show signs of life with the BTC market dominance index sliding from 67% to 65% after the halving. Is the momentum now shifting towards altcoins from Bitcoin as the most anticipated event is behind us?
Crypto market daily performance. Source: Coin360Bitcoin price is hovering inside a wide range as volatility drops
The price of Bitcoin is stuck inside a wide range as the next chart shows. The resistance area in the red zone between $9,800 and $10,100. At the same time, the price is finding support in the $8,250-8,500 area.
Additionally, BTC is moving above the 100-day and 200-day moving averages (MA), a bullish sign for the markets.
BTC USD 1-day chart. Source: TradingView
As the halving hype is slowly fading and the market goes back to its daily rhythm, the price of Bitcoin is also stabilizing. Is that unusual?
No, thats normal. The halving was such a big event for Bitcoin that the hype on social media can create unsustainable price rallies and drops around the event.
BTC USD 2016 halving 1-day chart. Source: TradingView
The previous halving shows a similar structure. The price of Bitcoin moved significantly in the run-up to the event, then a pre-halving crash occurred and a new range was established. Throughout the month, the price of Bitcoin consolidated inside a range.
Afterward, one more drop occurred and the market continued its upward momentum while holding the 200-MA as support until the peak in December 2017.
Bitcoin fails to break $10,000 and drops out of the rising wedge