In the aftermath of the halving Bitcoin could be turning bullish again
Bitcoin enjoyed a solid run since the earliest days of 2024, and after the SEC approved the use of ETFs on January 10th, the run really began to pick up speed and took the coin to the highest levels it has had so far, surpassing the all-time high levels of 2021 by a considerable margin. However, the growth corrections follow in the aftermath, and the prices tend to drop significantly during this time. This time around, though, the marketplace was sufficiently developed that the losses didn’t amount to the identical amounts as during previous corrections, and the prices remained relatively elevated even in the aftermath.
The Bitcoin price chart has recorded the beginning of a new rally as of November 6th, and since then the price has reached a whopping $99K, a much more elevated level than anything recorded in the ecosystem before. Right now, most are convinced that the climb to a six-figure price is only a matter of time.
$66,000
On April 22nd, two days after the halving, Bitcoin had a considerable breakthrough at the $66K mark, indicative of the re-emergence of the bullish trend a mere forty-eight hours following the block reward slashing. As with any price change that takes place in the Bitcoin ecosystem, investors believe this one to be the result of shifting market sentiments as well. The escalating geopolitical tensions all over the world have also caused riskier assets to go up, while those that are more standard, such as gold, saw their values decrease, showing once again that cryptocurrencies are highly responsive to the world and the latest news.
Higher leverage levels, as well as the emergence of options market positions, all suggest that a catch-up rally is in the works as well. The price growth is correlated to a breakout in the relative strength index, as well as higher lows in the resistance levels, all of which means that buying power is becoming stronger and more cohesive. Since Bitcoin is currently moving toward a reclaim, most investors and analysts anticipate that BTC is likely to move toward even higher levels, with the potential to reach six-figure prices being higher than ever before.
MVRV-Z
The MVRV-Z refers to the market’s value relative position to realized value. When it goes higher, it means that BTC is overvalued, and the opposite indicates that it is undervalued. Following the corrections that arrived right ahead of the next halving, the MVRV-Z metric registered a healthy correction, dropping to 2.08 on April 17th. This means that Bitcoin is no longer overbought, which is typically good news for investors since it shows that the asset is no longer trading at a much higher level compared to its intrinsic, fair value. Although these events are typically short-lived and often arise because there’s an expectation that the market will correct them in the future, they can still cause uncertainty among investors, who are unsure of how to move forward with their strategies.
However, the MVRV-Z indicator also shows that the marketplace is currently under the influence of an upward trend similar to that of previous bullish cycles. This is good news, as investors can use historical data to determine market movements from this point onward. The cooling off is also similar to those that occurred as part of previous halving sequences.
2021 high levels
In the aftermath of the 2020 halving, Bitcoin reached a new all-time high a year later, going to the $69K level and staying there for a while until the bear market of 2022 that saw value decreases of close to 70%. Currently, most researchers and investors believe that in order to have a bullish breakout and continue on an ascending path, Bitcoin needs to reclaim and consolidate the $69K level, the 2021 all-time high. Starting on April 12th, the blockchain recorded a period of massive liquidations that occurred in the span of roughly two days. This event amounted to a whopping $2 billion solely in liquidations.
These metrics and figures indicate that open interest is going down and that there are fewer spot orders as a whole, meaning that smaller orders have an easier time moving across the market. Regardless, most analysts are optimistic about Bitcoin’s price action over the short term despite the potential for heightened volatility and liquidity as leverage returns to the markets. The vital price movements will occur in the $69K – $70K bracket, and Bitcoin might attempt to get to new all-time high levels that surpass those recorded in March.
Bitcoin mining system
A payments company recently announced its plans to develop an entire Bitcoin mining system in response to the challenges operators have been dealing with lately. Pre-halving predictions showed that the general consensus was that a large number of miners were going to be affected by the changes brought by the reward slashes, with many losing all profitability altogether. There are only two options, to look into and buy new coin minting apparatus that can support demands, or relocate to an area with lower energy prices overall. Naturally, there’s also the possibility of giving up mining altogether, but it’s unlikely that the majority of operators would prefer this scenario.
As such, some companies have begun working on plans to launch their own mining facilities and systems. The discussions were conducted alongside miners in order to make sure that the challenges they face are identified correctly and that the solutions aimed at remedying the situation don’t do more harm than good. These insights will achieve the goal of fostering better, safer, and more complete decentralization within the marketplace, with the addition of a new mining chip to go with the more extensive system.
The cryptocurrency marketplace is constantly at the whim of several factors that could change at the drop of a hat, but that hasn’t taken away from its appeal to investors. Instead, it has enhanced it, and a growing number of users are adding it to their portfolios to diversify them and ensure that they maintain their profits high. Remember that a good strategy will take you far and that the fear of missing out and impulsiveness are your enemies in this high-stakes game.
