Bitcoin Price Surges Above $67,000 Driven by Increased Demand Ahead of Upcoming Halving Event
Bitcoin price is currently in the process of creating a bullish pattern on longer time frames, indicating that an uptrend continuation is imminent.
The highly anticipated Bitcoin halving event is just around the corner, and it is expected to intensify the supply versus demand shock.
Jerome Powell, the Chair of the US Federal Reserve, has stated that he anticipates rate cuts to occur at some point this year.
Bitcoin’s price experienced a brief rally, surpassing $69,000 on Thursday, following a rebound from the support level of approximately $64,500. However, the flagship cryptocurrency has retraced around 3 percent and is now trading at around $67,000 during the early London session on Friday. This increased volatility in the Bitcoin market has led to approximately $230 million in cryptocurrency liquidations, with altcoins experiencing further declines.
Macro fundamentals are at play, with over 90,700 Bitcoins being withdrawn from major cryptocurrency exchanges in the past month, according to market data from CryptoQuant. The demand for Bitcoin from spot BTC ETFs has significantly contributed to the decrease in exchange supply in recent times.
Furthermore, the upcoming fourth halving, which is set to occur in approximately 16 days, will result in a decrease in the daily miners’ reward from 900 to approximately 450 coins.
In addition, more investors worldwide are turning to Bitcoin and other cryptocurrencies as a hedge against uncontrolled fiat inflation. On Thursday, Jerome Powell, the Chair of the Federal Reserve, announced during a speech at Stanford that he still expects rate cuts to happen at some point this year.
Looking ahead, Bitcoin’s price has been consolidating since reaching a new high of around $74,000 last month. With a support level established at approximately $67,000, it is likely that Bitcoin’s price will reach a new all-time high in the coming weeks, driven by the upcoming halving event.
Popular crypto analyst Captain Faibik has conducted a Bitcoin price analysis, suggesting that the flagship cryptocurrency is forming a bullish pennant triangle, which could propel its price above $82,000 in the near future. However, the analyst emphasizes that Bitcoin’s price must consistently close above the resistance level of around $70,000 in the upcoming days to invalidate the possibility of further correction.
Overall, Bitcoin continues to attract attention and interest as it navigates through various market dynamics and events, making it a captivating asset for investors.