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Bitcoin Breaks Above $65,000 Ahead of Halving – Monitor this important chart level
Key points
- Bitcoin has surged past $65,000, recovering from earlier losses, ahead of the highly anticipated halving event and amid investor concerns over geopolitical tensions.
- Recently launched Bitcoin spot ETFs helped push the price of Bitcoin to a record high ahead of the halving event, an event that has never occurred in Bitcoin’s 15-year history.
- Bitcoin price has successfully remained above the key $60,000 level and the 38.2% Fibonacci level following Israel’s retaliatory attack on Iran, indicating that recent geopolitical tensions may already be taken into account in the price.
Bitcoin (Bitcoin), the largest cryptocurrency in market capitalizationrose above $65,000 on Friday morning, paring previous intraday losses ahead of the highly anticipated halving event that is expected to take place today or tomorrow. The price had fallen below $60,000 earlier following overnight news that Israel had retaliated against Iran for its drone and missile attack over the weekend.
At the time of the Olympics pioneer of cryptocurrency, Bitcoin will suffer this is a halving every four years, in which the digital asset block the reward it drops from 6.25 to 3,125 bitcoins, an event which historically increases its value in the following months given a smaller number of coins in circulation.
However, Bitcoin has fallen as much as 19% from its levels record of $73,835.57 on March 14, with some analysts saying the sell-off indicates the cryptocurrency’s halving has already been factored into the current price. They claim that it was launched recently spot Bitcoin Exchange Traded Funds (ETFs) they improved the asset’s pricing efficiency and pushed the cryptocurrency to a new all-time high before the halving, an event that has never occurred in Bitcoin’s 15-year history.
Market commentators also point out that the current macroeconomic conditions are significantly different compared to the three occasions in which Bitcoin has halved since 2012, characterized by low interest rates and low inflation compared to today’s higher rates they do risk appetite assets, such as cryptocurrencies, less attractive.
Bitcoin bulls admit it intuitive investors led the recent rally, but expect sentiment to turn bullish after the halving, which they believe will attract new investors retail traders. “Although the recent rally has been led by institutional investors, with past halvings we have seen a change in positive sentiment in the market attracting new retail traders; I think the cycle it will happen again,” Miles Suter of Cash App told CoinDesk.
Taking a look at the charts, Bitcoin price consolidated within a symmetrical triangle throughout March and early April before abandoning the pattern late last week, with sentiment remaining bearish ahead of the halving.
Looking ahead, investors should monitor whether the legacy cryptocurrency can sustain itself above the psychological $60,000 level, an area of the chart where the price is also located support from the key 38.2% Fibonacci retracement level, when using an extended grid from the January 23 low to the March 14 high. Interestingly, BTC tested this key level early Friday morning after news emerged of Israel’s retaliatory attack on Iran, but found immediate buying interest, indicating that recent geopolitical tensions may already be taken into account in the price.
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