Bitcoin Price Forecast: How To Navigate BTC Pre-Halving, Macroeconomic Uncertainties

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Bitcoin Price Prediction: It seems that Bitcoin, the largest cryptocurrency, may have hit rock bottom before the upcoming halving event, scheduled for this coming Saturday. Over the past few weeks, both Bitcoin and other cryptocurrencies experienced a significant increase in sell-offs. The escalating geopolitical conflicts between Israel and Gaza in the Middle East have worsened matters, causing investors to offload riskier assets such as cryptos.

During US business hours on Thursday, April 18, Bitcoin’s price, which saw a small decrease in the previous day, is currently at around $62,115.

Bitcoin Price Forecast: How Far Can BTC Recover Pre-Halving?

The price of Bitcoin is once again hovering around the $61,000 to $62,000 mark as a key support level, making it the third time this range has been tested since late March. Despite the volatile market swings over the past few days, investors are showing renewed interest and preparing to buy more Bitcoin in anticipation of the upcoming halving event.

According to various blockchain estimations, Bitcoin’s next halving is predicted to happen on April 20, Saturday. Halving is an integral part of Bitcoin’s mechanism that helps regulate its issuance, thereby increasing its scarcity and keeping inflation at bay (as previously explained in detail by CoinGape).

Every four years, or once 210,000 blocks have been mined, the reward for mining new bitcoins is decreased.

The reduction in new Bitcoins created during the halving event is typically viewed as significant, leading to substantial price increases for Bitcoin within the following months. According to a post on X by Glassnode, Bitcoin’s price has experienced rises of “1,000%, 200%, and 600%” after previous halvings.

Now, the question most investors are asking themselves ahead of Saturday is “Will it happen again?”

Within the next two days, the Bitcoin reward for mining a new block will be reduced to 3.125 BTC as part of the halving process. Previously, the price of Bitcoin experienced significant increases following halvings – rising by 1000%, 200%, and 600% at different points in history. It remains to be seen whether this trend will continue. Delve deeper into this topic and uncover valuable insights from our Q2 Crypto Market Guide, featured in our ‘Spotlights’ series.
— glassnode (@glassnode) April 17, 2024

According to economic principles of supply and demand, prices typically increase when the desire for a product exceeds the amount available for sale. Consequently, Bitcoin’s price may experience a notable surge due to the shrinking supply, as market interest continues to grow, fueled by the introduction of spot Bitcoin ETFs in the United States and Hong Kong.

Assessing Bitcoin’s Short-Term Technical Outlook

If Bitcoin’s support remains strong between $61,000 and $62,000, traders will grow more certain that Bitcoin can turn its trend around and endure during the upcoming halving event.

Yet, it’s important for traders to take note of Bitcoin’s vulnerable state. The Moving Average Divergence (MACD) indicator currently signals a bearish trend, remaining below the neutral zone.

If we consider this, surpassing the current resistance level at $60,000 could lead to significant downward pressure and potentially cause a drop in price towards $58,000.

Bitcoin Price Forecast: How To Navigate BTC Pre-Halving, Macroeconomic Uncertainties

If the price of Bitcoin continues to climb, bulls will be in control and the trend line (shown as a black ascending line) and the red 50-day Exponential Moving Average (EMA), currently at $64,517, will be surpassed.

On the day Bitcoin’s supply is halved, FOMO (Fear of Missing Out) could fuel a price surge, with buyers aiming to push the value above $67,500 once more. Nevertheless, reaching $70,000 in the immediate future might be difficult, even though it could eventually occur as Bitcoin’s supply continues to shrink over the coming weeks.

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2024-04-18 17:10