The upcoming halving event for Bitcoin, expected to occur on April 19-20, has generated excitement among cryptocurrency enthusiasts. The reduction in block mining rewards is projected to make Bitcoin mining less profitable, ultimately leading to a decrease in the coin supply. This, in turn, could potentially drive up the BTC/USD price as demand remains constant.
Price Impact of Halving
While Ripple CEO Brad Garlinghouse has predicted a significant increase in the cryptocurrency market cap by 2024, reaching $5 trillion, with Bitcoin’s halving playing a role in this growth, it is important to note that Bitcoin prices are influenced by a multitude of factors. The historical data from the last halving event on May 11, 2020, showed a price increase of around 12% in the following week. However, it is also possible that the current price of Bitcoin already reflects the upcoming halving event.
Market Sentiment and Technical Analysis
Despite the uncertainties surrounding the impact of the halving, the overall market sentiment appears to be positive. Over the weekend, BTC/USD prices saw a 2.5% increase, indicating a general optimism in the market. Technical analysis of the BTC/USD chart suggests that there is a potential for a bullish breakout. The absence of downward pressure on the market and the formation of higher lows indicate a potential upward movement.
If the positive expectations surrounding the halving event materialize, we could see Bitcoin prices breaking above the consolidating zone and overcoming significant resistance levels. The psychological mark of $70,000 per coin could be a key level to watch, with the possibility of reaching the median line of the ascending channel as a potential target for bullish investors.
FXOpen offers cryptocurrency CFDs, including Bitcoin and Ethereum, with floating spreads and 1:2 leverage. While the halving event may impact Bitcoin prices, it is essential for traders to consider all factors before making trading decisions. The information provided in this article represents the opinion of FXOpen and should not be construed as financial advice or a recommendation to trade.
Leave a Reply