Bitcoin (BTC) has reclaimed the $65,000 mark shortly after the 4th halving event. The halving, which occurred on April 20, resulted in miners’ rewards being halved from 6.25 BTC to 3.125 BTC. Initially, market participants anticipated high volatility surrounding the halving, expecting significant price fluctuations.
However, Bitcoin’s price remained relatively stable between $63,000 and $64,000 leading up to the event. Now, with the halving behind us, many are wondering what lies ahead for the cryptocurrency in the coming months. Coin Edition provides an analysis of the price to assess whether Bitcoin will reach the lofty values that many traders have predicted for this cycle.
Looking at the 4-hour chart for BTC/USD, Bitcoin has been trading between $60,000 and $68,000 since facing resistance at $71,030. A crucial support level was observed at $60,266, and a breakdown below this could result in a correction to levels as low as $56,000. However, the Relative Strength Index (RSI) indicates bullish momentum and suggests a potential increase in price in the short term.
On the other hand, the Money Flow Index (MFI) has turned downward after a previous surge, indicating a decrease in capital inflow into the market. If this trend continues, Bitcoin may face difficulty surpassing the $73,000 region.
Analyzing the daily chart, it appears that Bitcoin’s price could experience further decline before embarking on a rally. The Moving Average Convergence Divergence (MACD) is currently negative, indicating a bearish momentum. Additionally, the 26 EMA (orange) is above the 12 EMA (blue), suggesting that sellers may outnumber buyers. This bearish trend could potentially push the price down to levels between $53,000 and $58,000.
However, in the mid to long term, Bitcoin is expected to exceed its all-time high. According to signals from the Fibonacci indicator, BTC could reach $73,246 after the correction phase is over. This level corresponds to the 0.786 Fib level. Following this, a potential surge towards $85,000 could be on the horizon for Bitcoin. It remains uncertain whether Bitcoin will reach six-figure values before the end of the year.
Please note that the information provided in this article is for informational and educational purposes only and should not be considered as financial advice. Coin Edition is not liable for any losses incurred as a result of utilizing the content, products, or services mentioned. Readers are advised to exercise caution and conduct their own research before making any investment decisions.