Benzinga - by Zaheer Anwari, Benzinga Contributor.
- The fourth Bitcoin halving, expected in mid-April 2024, is anticipated to increase market volatility.
- Bitcoin's value is currently at a crucial juncture, close to its previous all-time high of $69,000.
- Despite a 77% drop from its all-time high, Bitcoin recovered by surging 337% to new highs.
Historical data shows a familiar trend during halving these events. A supply shock usually occurs which tightens Bitcoin's availability. The reduced supply, coupled with steady or growing demand, historically triggers a surge in Bitcoin's value.
Previous halvings have foreshadowed substantial price hikes, sparking speculations and heightened interest in cryptocurrencies
The price of Bitcoin finds itself at a pivotal point, with its value hovering around the previous all-time high of $69,000, reached back in November 2021. The journey since then has been a bumpy one filled with ups and downs.
Despite a steep drop of 77% following the all-time high, Bitcoin bounced back, surging up 337% to hit a new record high of $73,794 on March 11, 2024. However, after this milestone, its price has retraced and is now struggling to break through recent highs.
This resistance area presents a significant challenge, hindering Bitcoin from forming a bull trend right now. If the price declines further, the daily 20 and 50 simple moving averages could offer some support, potentially propelling the price to new heights.
The upcoming halving event looms as a pivotal moment for Bitcoin, possibly triggering the breakthrough needed to surpass current resistance and reach new record levels.
After the closing bell on Monday, March 25, the cryptocurrency closed at $69898, trading up by 3.88%.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.
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