Bitcoin Rallies Past $70,000 Amid Upcoming Halving and Market Predictions
Summary:
Bitcoin kicks off the second week of April with a surge past $70,000, following consistent weekend growth. The focus is on the upcoming Bitcoin block subsidy halving in ten days, which could trigger further volatility. Meanwhile, anticipation for an immediate interest rate cut from the U.S. Federal Reserve has dwindled. As we move into a crucial week for U.S. macroeconomic data, Bitcoin maintains its bullish momentum though some traders predict a possible pullback. The necessity of closely watching Bitcoin mining costs is underscored as these are set to double due to the halving event, emphasizing the need for monitoring network fundamentals.
As we kick off the second week of April, Bitcoin (BTC) takes a bullish leap, touching $70,000. After a weekend of consistent growth, the premier cryptocurrency is inching closer to a possible all-time high with further optimism brewing among trading communities. This flurry of excitement is notably reminiscent of crypto trends seen in the past few weeks, following a period of correction. However, one should bear in mind that the upcoming Bitcoin block subsidy halving could introduce further volatility.
The anticipated Bitcoin block subsidy halving event, due in just ten days, is leading miners to conclude their preparations. This event will result in overnight halving of the reward per block. Monitoring network fundamentals such as difficulty likely reaching unprecedented heights this week will be crucial.
Meanwhile, anticipation for a prompt interest rate cut by the U.S. Federal Reserve has cooled down on the macroeconomic landscape. In this new week, Cointelegraph will be closely following these key topics influencing Bitcoin rates.
Bitcoin began the week with renewed vigor, aiming to recover its former peak. The weekly close hovered around $69,000, following a weekend characterised by slow progression of the BTC/USD, despite a lack of institutional involvement. Noteworthy movement was observed afterward, with the Asian trading session experiencing an abrupt positive fluctuation, reaching peaks of $72,573 on Bitstamp.
Renowned financial commentator Tedtalksmacro noted a keen interest in spot BTC purchases. He observed that spot buyers were spearheading derivatives on the bullish trajectory. Insiders are generally positive about a sustainable bullish momentum, citing the importance of consistent interest.
At the same time, some traders anticipate a possible pullback. Trader Crypto Ed highlighted a clear pennant pattern which may lead to a temporary slump to $68,000 before achieving new highs. In addition, two immediate "gaps" in the Bitcoin futures market by CME Group have become visible, ensnaring the attention of traders.
A crucial week for U.S. macroeconomic data is ahead, which may corroborate the Fed's stance on rate cuts. Both the Consumer Price Index (CPI) and the Producer Price Index (PPI) for March will be unveiled in the next few days. Chair Jerome Powell indicated contentment with the data-driven strategy, as inflation gradually weakens and the economy remains resilient amid policy tightening. Consequently, market expectations for the commencement of these rate cuts have been delayed until the end of the year.
As the Bitcoin halving event looms closer, analysts predict that miners will face a transitional period ahead. Rising operational costs, set to double by the month's end, have garnered attention. CEO of CryptoQuant, Ki Young Ju, remarked that these costs were already twice that of 2020, but elevated Bitcoin prices have cushioned miners.
Network fundamentals proceed into the halving in a robust state. Arguably, the mining difficulty could reach a new high of 85 trillion, reflecting an approximately 2% increase since April 11. Despite nearly a month long consolidative BTC price movement, the difficulty decreased by less than 1% according to BTC.com.
Bitcoin's long-term holders have been increasingly active sellers at the current price points. On-chain analyst at Glassnode, Checkmate, deems this standard procedure. He explained that sudden demand and liquidity trigger smart-money holders to sell their coins which does not necessarily mean sell-side pressure will dominate the market. So far, the current situation seems to echo historical trends, with long-term holder entities likely to shed around 14% of the Bitcoin supply they control during a bull market. Presently, less than half of this has been sold.
The above post does not provide investment advice or recommendations. Every investment and trading movement entails risk, and readers are recommended to carry out their own research while making a decision.
Published At
4/8/2024 1:02:46 PM
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