On April 19, 2024, a halving occurred in the Bitcoin network, resulting in the reward for the mined block amounting to 3.125 BTC.
Historically, after the halving (which is associated with a reduction in supply), the price of Bitcoin heads to all-time highs. But, as Forbes reports, Goldman Sachs analysts warn against extrapolating the results of Bitcoin price movements after past halvings to the current moment. After all, back then, the halvings occurred during a period of loose monetary policy by the Federal Reserve, while this time the Fed is struggling with harsher-than-expected inflation.
JPMorgan analysts led by Nikolaos Panigirtzoglou are also cautious. “We do not expect Bitcoin price increases post halving as it has been already priced in,” they wrote.
However, this morning Bitcoin is trading above USD 66,000, the highest price in a week. Adding to the market’s positivity are rumors that the Securities and Futures Commission (SFC) in Hong Kong is going to approve spot applications for Bitcoin ETFs.
Technical analysis of the BTC/USD chart shows that:
→ Bitcoin price made a double false breakout of the psychological level of USD 60,000 last week – April 17 and 18;
→ after this maneuver, the Bitcoin price confidently recovered into the consolidation zone, shown by a narrowing green triangle;
→ Bitcoin price today may be affected by the USD 66,500 level, which is the central axis of the consolidation zone, as well as the former support level (as shown by the arrows);
What about the longer term? The demand activity seen around the USD 60,000 level can be interpreted as a stable interest in the main cryptocurrency on the part of investors, which may ultimately lead to an attempt by the Bitcoin price to attack the USD 70,000 level near the upper border of the consolidation zone.
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