May 23, 2024
Bitcoin's at $65,972, Signals Bullish Momentum Post-Halving
Bitcoin price today

Bitcoin’s at $65,972, Signals Bullish Momentum Post-Halving

Monday, April 22, 2024: Bitcoin Price is at 65,972, kicks off the first week of its new halving epoch with bullish momentum, approaching the $70,000 mark. The cryptocurrency’s price action signals resilience after the commencement of the latest chapter in its history with the halving event.

Despite recent volatility leading to six-week lows, the market seems to be regaining stability, prompting speculation about whether the worst is behind.

BTC/USD 1-hour chart. Source: TradingView

Analysts observe patterns typical of halving cycles, which often entail price declines followed by significant recoveries over months, rather than days or weeks. However, this cycle has witnessed unprecedented occurrences, including BTC/USD hitting a new all-time high before the halving.

The cryptocurrency’s resilience and potential in 2024 remain uncertain as miners adapt to the new epoch amidst a delicate geopolitical and macroeconomic landscape.

BTC Price Surge and Market Dynamics

BTC/USD surpasses $66,000, marking its highest level since mid-April, with traders closely monitoring its movement ahead of the week’s first Wall Street session.

BTC/USDT order book data for Binance. Source: Keith Alan

Keith Alan, co-founder of Material Indicators, identifies significant ask liquidity above the spot price, potentially preventing a sustained uptrend. He speculates that institutional investors may be manipulating prices to benefit from market movements before traditional financial markets open.

While Bitcoin eats through liquidity, short positions worth $17 million have liquidated over the past 24 hours, as per CoinGlass data.

BTC liquidation heatmap (screenshot). Source: CoinGlass

Popular trader Skew describes the weekly close at $65,000 as “pretty good,” emphasizing the importance of early-week trends for risk assessment and BTC price direction.

Analysis and Predictions for BTC Post-Halving

Analysts, including Rekt Capital, examine BTC’s price phases following previous halvings to anticipate future movements. Rekt Capital suggests that BTC/USD is currently in a re-accumulation phase, consolidating around the halving. This consolidation period could potentially serve as a launchpad for long-term gains.

BTC/USD chart. Source: Rekt Capital

With the block subsidy halving completed, market participants await BTC’s reaction and speculate whether it will follow previous halving paradigms.

Charles Edwards of Capriole Investments notes a seismic shift for Bitcoin, highlighting the cryptocurrency’s current trading below its electrical cost. He predicts a correction in BTC’s price trajectory, as it is trading at a substantial discount relative to mining costs.

Bitcoin production cost annotated chart. Source: Charles Edwards

Market Sentiment and External Factors

As BTC experiences a resurgence in bullish sentiment, the Crypto Fear and Greed Index rises, indicating increasing investor optimism. This sentiment shift coincides with a reset in trader positioning, suggesting a potential market rebound.

Crypto Fear and Greed Index (screenshot). Source: Alternative.me

Macroeconomic data releases, including GDP and jobless claims, along with the PCE inflation index, are anticipated to influence BTC price movements. Central bank decisions in Europe and the UK also contribute to market uncertainty.

Despite recent challenges such as high transaction fees, BTC miners continue to thrive, benefiting from increased revenues post-halving.

Photo by Karolina Grabowska

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