Bitcoin (BTC) trading at $2,800 isn’t scary as long as it happens before May’s block reward halving, crypto analyst Tone Vays believes.
In the latest edition of his Trading Bitcoin YouTube series on March 18, the celebrated trader said that as of now, he is eyeing a floor for BTC/USD of $2,000, Cointelegraph reported.
In his view, bitcoin had room to halve in value in the period prior to the halving, scheduled for around May 9.
“It’s scary after the halving; it’s not scary before the halving,” he said about a $2,800 level. “In fact, I always anticipated it before the halving – so it’s getting there, even if it’s a few weeks before the halving, I am perfectly fine with it.”
Last week, Vays called for bitcoin to return below $5,000 after it briefly rallied following Wednesday’s epic daily losses which at one point totaled 60%.
Continuing, he said that $2,800 levels practically represent the completion of a forecasted 80% drop from 2019’s highs of around $13,800. Last week’s low of $3,700, he nonetheless added, was likely “close enough.”
Vays is not alone. According to statistician Willy Woo, Bitcoin is in line for losses before a major retaliation takes hold of the market.
“Dump then moon. We are undergoing flight to safety right now, BTC is looking for its bottom,” he tweeted on Wednesday. “But know that once the bottom is in there are strong bullish pressures ahead. It’s this economic environment in the years ahead that Bitcoin was built for.”
Meanwhile, Cointelegraph reported, current theory around the halving focuses on miner profitability. Bitcoin’s losses have likely forced out smaller miners, given that its production cost is currently several thousand dollars higher than the spot price.
As such, major players, such as those producing hardware, will be able to pick up the slack and claim more in block rewards, thus countering the impact of the supply dropping 50% in May.