The third block reward halving of Bitcoin (BTC) scheduled to take place in 14 days. And this event is usually followed by a powerful rally. That many have long expected will bring the digital asset to a new all-time high.

Surprisingly, Joe007, one of the cryptocurrency market’s bitcoin whales, has suggested that halving is already priced. Which could leave the cryptocurrency vulnerable to a crash.

Joe007 said in a sarcastic tone:

“No, of course it’s not priced in. On the very day of The Great Halvening, everybody will finally realize how underpriced BTC is, and they will all rush to buy it. In droves. With their unemployment checks.”

Joe007 estimated to hold a significant short position in Bitcoin, as seen by the leaderboard data from Bitfinex. The trader has been down $11.3 million over the past month, it shows. Since Bitcoin’s price has risen to around $7,700, it shows that the whale holds a big, short-term position and expects BTC’s price to fall in the short-term.

Halving bitcoin occurs every four years, it’s not a one-off case

The Bitcoin block reward halving happens every four years, a cycle that diminishes the amount of BTC produced by the miners. It cuts miners’ incomes half overnight, forcing miners to adjust to the transition and shaking out overleveraged miners, mostly.

Halving is not an unprecedented event; in reality, by creating strong cash-buffers and negotiating with energy service providers to try to reduce mining costs, the mining industry is planning for halving at least 12 months out.

In the near term, there is no clear reason to expect a sudden increase in Bitcoin’s price simply because it is approaching halving.

The cryptocurrency market’s propensity to show “sell-the-news” sell-offs and the lack of a short-term upsurge in the past two halves indicate the idea of a Bitcoin rally halving is premature.

The bitcoin price is also hovering between $7,700 and $8,300 at a multi-year resistance level. The 200-day simple moving average, suggesting a significant long-term reversal point for an asset or index, currently stands at $8,000, too.

The strong macro-resistance overhead and large sell order clusters at the $8,000 level. At major spot exchanges indicate BTC remains vulnerable to a sharp pullback.

A major correction can not be ruled out

Billionaire investors like Marc Cuban, Carl Icahn, and Paul Tudor Jones are heading towards cash gradually. Hedging their positions expecting major downward movements in the short-term coming into the stock market.

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

On a technical level, given the imminent halving, a rejection of Bitcoin. At a key level such as an $8,000 200-day SMA may result in a significant market pullback, as seen in May and October 2019.