Bitcoin May See November Price Boost With Halving Due in Six Months

View Bitcoin tends to pick up a strong bid six months ahead of the reward halving, according to historical data.

With the halving event due in May 2020, BTC may rise above the recent high of $10,350 in November and could challenge the 2019 high of $13,880 over the next couple of months.

Bitcoin will likely put on a good show in November with a price-positive event due in six months.

To put it another way, the supply of new coins will drop by half after May. In the past, the cryptocurrency has picked up a strong bid six months ahead of the reward halving.

Bitcoin's block reward was cut from 50 BTC to 25 BTC in November 2012.

BTC rallied from $5 to $16 in the three months to mid-August and built a new base around $10.00 in November.

On similar lines, BTC jumped from $360 to $780 in the four months to mid-June 2016, before trimming gains and falling back to $465 in August, when the block reward was cut from 25 BTC to 12.5 BTC. The data indicates the market begins pricing in an impending supply cut six months in advance.

If history is a guide, BTC may rise well above the recent high of $10,350 in November and could challenge the 2019 high of $13,880 over the next couple of months.

Adding to the likelihood of a rally, bitcoin has scored gains in November in six out of the last eight years.

Notably, November was a green month for six straight years from 2012 to 2017.