(Kitco News) – The fourth Bitcoin (BTC) halving went off without a hitch on Friday evening, reducing the block reward from 6.25 BTC to 3.125 BTC, a development that cut the amount of Bitcoin mined daily from 900 to 450.
As many analysts had predicted, the halving was largely a non-event when it came to Bitcoin’s price action, with the top crypto trading near support at $64,000 immediately following the halving before climbing to $65,000 on Saturday.
BTC/USD Chart by TradingView
After briefly dipping to $64,275 on Sunday afternoon, bull reinforcements arrived and pushed it back above $65,000. They extended their gains on Monday morning, lifting King Crypto to a high of $65,555, and are now aiming for resistance at $67,000.
While many crypto traders have been emboldened by Bitcoin’s price resilience following the halving, one analyst has warned that it’s too early to say BTC will trade ‘up only’ from here as halvings have historically been followed by a period of price weakness.
“Despite some volatile price action in the days leading up to Friday’s Bitcoin halving event, the price of the world’s most popular cryptocurrency has remained relatively stable since,” said Neil Roarty, analyst at investment platform Stocklytics. “While previous halvings have historically been followed by major bull runs, it’s worth recalling that these played out over a matter of months rather than days or weeks.”
“In fact, several analysts are predicting a downturn in BTC’s price in the short-to-medium term, citing central bankers' reluctance to reduce interest rates and the hesitancy of venture capital to fully embrace the space as factors that might put the brakes on what has been a remarkable 2024 thus far,” he added.
“Remember, Bitcoin’s investment landscape is far more sophisticated than it was even four years ago,” Roarty said. “Those eyeing gains from Friday’s halving may well need to prepare themselves for a marathon, rather than a sprint.”
That said, Bitcoin analyst Tuur Demeester gave traders cause for hope when he said that future pullbacks are likely to stay above $60,000, which he thinks is the established bottom for this correction.
Bitcoin: I think its likely that $60k ends up being the bottom of this correction. 20% drawdown from the high. pic.twitter.com/UueSUnfImy
— Tuur Demeester (@TuurDemeester) April 18, 2024
“20% drawdown would fit the current bull's pattern,” Demeester added.
Demeester’s outlook was backed by market analyst Rekt Capital, who said $60,000 represents the range low of the trading range that Bitcoin is likely to trade in during the weeks ahead, before ultimately climbing higher.
#BTC
Bitcoin has managed to protect the Range Low of the Re-Accumulation Range
Because of Bitcoin's strength at the ~$60000 Range Low...
It's getting increasingly likely that Bitcoin has established its main range for the coming several weeks$BTC #Bitcoin #BitcoinHalving pic.twitter.com/9pLnWkqZQr— Rekt Capital (@rektcapital) April 22, 2024
