BTC Price Climbs Above $47,661 as Bitcoin Halving Approaches
The price of Bitcoin (BTC) reached a high of $47,661 on February 9, signaling bullish action in anticipation of the upcoming fourth Bitcoin halving event. This event is set to occur in 70 days and could potentially lead to further upward momentum for BTC.
Bitcoin Miners Reduce Selling Pressure
Bitcoin miners and strategic investors are believed to be behind the recent price increase. They are making bullish bets ahead of the halving event, which will reduce the mining reward from 6.25 to 3.125 BTC per block mined. This trend is similar to what has been observed in other proof-of-work networks like Litecoin and Dogecoin.
Miner-to-Exchange Transactions Decline
CryptoQuant’s miner-to-exchange chart shows that transactions from recognized miners to exchange-hosted wallets have decreased by 25% between February 2 and February 8. This reduction in selling pressure from miners has a positive impact on the asset price by reducing market supply and signaling confidence in short-term price prospects.
Potential Breakout Above $48,500
In terms of short-term price action, Bitcoin faces resistance at the $48,500 level. However, if there is a decisive breakout above this key resistance level, it could lead to larger gains and potentially push the price above $50,000 for the first time since 2021.
Cautionary Note for Bears
On the other hand, if the price of Bitcoin dips below $40,000, it could negate the optimistic prediction. However, there are a significant number of addresses that acquired BTC at a minimum price of $42,672, which could lead to frantic purchases and a potential rebound to avoid losses.
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