Bitcoin Price Shows Signs of Recovery Ahead of Halving Event
After a challenging recovery from the dip below $39,000 in January, Bitcoin price is now on an upward trajectory as it approaches the upcoming halving event. The price of BTC surpassed $47,000 on Friday, signaling positive sentiment in the market for both Bitcoin and altcoins like Ethereum (ETH), Solana (SOL), and Cardano (ADA).
Experts Believe a Pre-Halving Rally is Underway
Many experts predict that Bitcoin is experiencing a pre-halving rally. On-chain indicators, such as the Market Value Realised Value (MVRV) ratio, suggest that the recent dip from $49,000 to below $39,000 was an opportunity to buy low before the price skyrockets. The MVRV ratio has risen to 2.06, indicating a high-risk regime often seen during the early stages of bull markets.
Analysts Outline Phases of Bitcoin Price Around Halving
Analyst Rekt Capital outlines the phases of Bitcoin price around the halving event. As BTC approaches $50,000, it is believed to be in a pre-halving rally phase. This will be followed by a pre-halving retrace, post-halving re-accumulation, and finally a post-halving parabolic uptrend.
Predictions Point Towards Higher Bitcoin Prices
The founder of MN Trading Consultancy, Michaël van de Poppe, agrees with this sentiment and believes that Bitcoin price will rise to a higher range between $53,000 and $55,000 before the halving event. This region between $48,000 and $50,000 is seen as crucial in the coming days.
Halving Event Could Trigger a Price Surge
The upcoming halving event in April is expected to have a significant impact on Bitcoin price. By cutting the rewards for miners in half, the halving event reduces the supply of new coins and increases their scarcity. If the demand for Bitcoin remains high or grows, this could lead to a substantial price surge.
Technical Analysis Supports Bullish Outlook
Bitcoin is currently trading above $47,000, with resistance in the yellow band around $50,000. Various indicators, including the Super Trend and moving averages like the 20-week EMA and 50 EMA, support the bullish theory targeting highs above $50,000. Traders will be closely watching Bitcoin’s behavior at $47,000 to determine its next move.
By
By
By