Bitcoin (BTC) has grown relentlessly in the first decade since its Genesis block. But now the price could enter a phase where new price movements are uncertain. However, the average price paints a bullish picture.
Bitcoin: Average price with a bullish direction
A look at Bitcoin’s average prices paints a bullish picture throughout the year. Bitcoin prices have moved through several waves or “epochs”, each with a very different pricing mechanism.
But the overall direction goes up if you take the average into account. Bitcoin prices show the ability to hit new highs over the years, fueled by different stages of introduction and trading. Twitter analyst Digitalik.net has created an… analysis and explained it based on reward periods.
A reward era was counted as the period in which the block reward is set to a certain level – for a period of approximately four years, based on the relative block time. The current era with a block reward of 12.5 BTC also had the highest average price, as it contained both high base prices and the absolute top for bitcoin prices above $ 19,600 and in some markets even up to $ 20,000.
This era has not ended and the price average has not yet been fixed. Overall, however, the trend shows long-term upside potential. The next halving will bring a new recalculation, starting with a new record of prices.
What the time after halving brings
Looking at the four-year reward periods also looks bullish, as short-term fluctuations and anomalies may be left out. The next bitcoin era also comes with new pricing mechanisms, the futures and options markets.
Bitcoin halving is traditionally followed by a bull run, as you can easily see afterwards.
Therefore, the new era could push the average price of Bitcoin from the currently relatively high baseline above $ 7,000 to a temporary high. There is no certainty when the rally will take place – but the reward era is four years long and can allow for a relatively long time to re-price.
However, the overall direction remains bullish, and BTC remains within the channels that predict potential gains in higher areas.