Bitcoin, the world’s largest cryptocurrency by market capitalization, has found renewed bullish momentum, surging past the $65K mark in the wake of its recent halving event. The highly anticipated halving, which occurred on April 19th, 2024, reduced the rate at which new bitcoins enter circulation, constricting supply and providing a catalyst for price appreciation.
As of the latest update, Bitcoin is trading at $66,151.00, reflecting a fair 0.37% gain over the past 24 hours. However, the crypto has recorded over 4.57% upswing over the past seven days, fuelled by the halving’s deflationary impact.
BTC Data Chart (CoinMarketCap)
Bitcoin’s market cap now stands at $1.3 Trillion, cementing its position as the dominant force in the digital asset realm and its volume at $24.7 billion. Notably, its circulating supply reached 19,688,981 BTC after the halving event last week, of the maximum supply of 21,000,000 BTC.
The halving event, which occurs approximately every four years, is a pre-programmed feature of Bitcoin’s monetary policy, designed to mimic the scarcity of precious metals like gold. By reducing the rate at which new bitcoins are minted, the halving event is widely expected to exert upward pressure on prices, as demand outpaces supply.
BTC Technical Analysis
Weekly Analysis
Over the past three weeks, Bitcoin has exhibited a bearish trend, closing lower for three consecutive weeks leading up to the halving event. However, the cryptocurrency found strong support at the $60K level, rebounding from the bear run. Last week’s candlestick formed a bullish hammer pattern, signaling a potential shift in momentum, which has indeed materialized this week with a bullish weekly candle thus far.
On the daily chart Bitcoin appears to be trading within a parallel descending channel, forming a bullish flag pattern. Since the halving on April 19th, 2024, Bitcoin has been on an upward trajectory, finding double support at the $59,900 zone from both an ascending trendline and the bottom of the bullish flag. Currently, Bitcoin is trading towards a potential double resistance level around $70,250, where the bullish flag resistance and an ascending trendline converge.
BTCUSD Daily Chart (TradingView)
On the 4-hour timeframe, Bitcoin has tapped into a supply zone ranging from $67,193 to $67,950. Price action is likely to respect this zone before rallying further to test stronger resistance levels at higher timeframes. Slightly above the 4-hour supply zone, an ascending trendline and the parallel descending channel resistance are present. Fair value gap also lie above the current price, suggesting that prices are likely to trade upward to test these confluence areas. However, if a rejection occurs, prices may drop to test the immediate support level at $64,325.
BTCUSD Price Chart (TradingView)
As Bitcoin continues to navigate the aftermath of the halving event, market participants will closely monitor its price action, seeking insights into the cryptocurrency’s trajectory in the face of evolving macroeconomic conditions and regulatory developments.
