By
Chimamanda U. Martha
April 24th, 2024
Commentators and analysts are convinced that that Bitcoin price is seemingly getting ready to rally after reaching a critical price level of $7,430 with the BTC halving event looming.
Crypto and Bitcoin investors are getting ready for what might be the biggest month ever in the history of the nascent industry as the next BTC halving event is getting closer. This week, Bitcoin SV and Bitcoin Cash will also go through halvings. That will give Bitcoin and crypto traders some clear indication of what they might expect for Bitcoin in mid-May.
These halvings might push miners toward Bitcoin, which might send the BTC price higher. Analysts at Arcane Research have found:
“There is a real risk that the hash rate might be temporarily halved on both the Bitcoin SV and Bitcoin Cash networks until the Bitcoin halving in May, unless the price of the coins or the transaction fees of the networks increase significantly relative to Bitcoin.”
Some analysts think that the upcoming halving will take Bitcoin near its all-time highs of $20,000 this year.
Critical Level for Previous Historic Bitcoin Rally
Bitcoin price has almost doubled after the historic collapse that happened in mid-March, taking the asset toward $3,800. The flagship crypto has now reclaimed a critically important level that has previously acted as a launchpad for a record-breaking, over 40% surge within 48 hours. Could Bitcoin be refueling its jets for another massive rally, or will the token reject from the powerful support that turned resistance?
At the start of this year, Bitcoin surged from below $7,000 to well above $10,000 before COVID-19 hit the markets hard. After panic hit the market, Bitcoin and other cryptos lost over 50% in a single day. BTC sunk to $3,800 due to cascading liquidations and panic sell-offs.
But after everything settled, Bitcoin price has recovered, breaking key resistance levels rising past $6,000 and now $7,000. On April 7, Bitcoin reached a high of $7,430, which is the level that acted as the launchpad for a record-breaking rally previously.
It is the same price level from which the crypto rallied +40% in late October 2019 when President Xi Jinping publicly endorsed blockchain. Many now wonder, will the record-breaking ‘China Pump’ repeat, or has the support turned into a major resistance?
Crypto Endorsement
Many commentators considered this as a support for Bitcoin and other cryptos. But, others believe that the surge came due to whales exploiting an opportunity to get rid of shorts through a news-driven rally, which worked perfectly. Whatever the reason, Bitcoin surged from $7,430 to $10,500 in less than 48 hours. That became a record for the third-biggest single-day gain in the token’s history.
At the time, that level was acting as a support, not resistance. Hence, a repeat of such a powerful move less likely for now. The level might be a powerful resistance, which might result in a severe downside move if the Bitcoin price is rejected from the critical level.
Bitcoin has a lot to prove in facing its first recession since it was unveiled. How it survives might enable it to reach its full potential as a haven asset to replace the dollar and other fiat currencies.
UFC Fighter Rebrands on Twitter to Promote BTC Halving
As Bitcoin prepares for halving in May, one prominent figure in the sports arena is actively playing his part to promote the event. Former Ultimate Fighting Championship (UFC) fighter who is also a well-known Bitcoin proponent Ben Askren has changed his user name on his Twitter account to “Bitcoin Halving May 13”. He has over 311,000 followers.
The new name and date refer to the official halving event happening in less than 36 days. When the total blocks in the BTC network reach 630,000, the halving will cut by half the block reward from 12.5 BTC to 6.25 BTC.