Bitcoin (BTC) remains the height ranked cryptocurrency on CoinMarketCap and equally the third cake reward halving is set to occur in 14 days, investors are hopeful that the toll volition notice a path to a new all-time high. This is because the block reward halving is usually preceded past a powerful rally that many have long forecast would bring the digital asset to a new all-time loftier.

Surprisingly, Joe007, one of the biggest Bitcoin whales in the cryptocurrency market, has implied that the halving is already priced in, which may leave the cryptocurrency vulnerable to a crash.

In a sarcastic tone, Joe007 said:

"No, of form information technology's not priced in. On the very 24-hour interval of The Not bad Halvening, everybody will finally realize how underpriced BTC is, and they will all rush to purchase it. In droves. With their unemployment checks."

Joe007 is estimated to be holding a large Bitcoin short position, every bit shown past data from the Bitfinex leaderboard. It indicates that the trader is downwards $11.iii million in the past month. Given that the Bitcoin toll has increased to effectually $7,700, it shows the whale is holding a large short position and expects the toll of BTC to decrease in the brusk-term.

Bitcoin whales on the Bitfinex leaderboard

Bitcoin whales on the Bitfinex leaderboard. Source: Bitfinex

Bitcoin halvings happen every four years, it'south non a one-off effect

The Bitcoin block reward halving, a procedure that decreases the amount of BTC generated by miners, happens every 4 years. It cuts the revenue of miners past half overnight, forcing miners to adapt to the modify and often shaking out overleveraged miners.

The halving is non an unexpected event; in fact, the mining industry prepares for the halving at least 12 months out by establishing strong cash-buffers and negotiating with electricity service providers to try to decrease the cost of mining.

In the near-term, there is no clear reason to anticipate a sudden surge in the price of Bitcoin simply because the halving is approaching.

The tendency of the cryptocurrency market to demonstrate "sell-the-news" sell-offs and the lack of a short-term upsurge in the past two halvings suggest that the narrative of a halving Bitcoin rally is premature.

The Bitcoin toll is also hovering at a multi-year resistance expanse between $7,700 and $8,300. The 200-day elementary moving boilerplate, which indicates a major long-term reversal bespeak for an asset or an index, is also currently at $8,000.

XBT USD daily chart

XBT USD daily chart. Source: TradingView

The articulate overhead macro resistance and large sell order clusters on major spot exchanges at the $8,000 level advise that BTC remains vulnerable to a sharp pullback.

A big correction cannot be ruled out

Billionaire investors similar Marc Cuban, Carl Icahn, and Paul Tudor Jones are increasingly moving towards cash, hedging their positions anticipating big downtrends to arrive in the stock market in the short-term.

As the coronavirus pandemic expands and major countries remain unsure when to reopen their economies, high-risk assets similar single stocks and cryptocurrencies could see subsiding momentum in the coming weeks.

At a technical level, despite the imminence of the halving, a rejection of Bitcoin at a fundamental level like a 200-day SMA at $eight,000 could lead to a potent market pullback, as seen in May and October 2022.