Don’t let the halving cover the forest: what the exchanges see for Bitcoin prior to the key event for crypto

The aforementioned already suggests a difficult year for investments. With very high interest rates in the US and few certainties of cuts in sight. In fact, the stakes of a scenariohigher for longer“for the North American economy it gains strength day by day and This would have an impact on risk assetslike cryptocurrencies.

And, as the team explains Binancethe BTC halving is an event scheduled to occur approximately every four years and involves halving the reward for mining Bitcoin transactions. This essentially increases the scarcity of the asset, which can influence demand and therefore its price.

“Historically, Bitcoin has seen notable price increases in the six months following each halving event”Adds Binance. Although past performance is not indicative of future results, these historical trends provide insights into the potential impact of halving events on price dynamics.

In that context, Ambit consulted with some of the world’s leading blockchain and cryptocurrency infrastructure providers to find out what the preview is like and what it yields Bitcoin technical analysis before an event that stands out due to on-chain activities and to positive updates to the market structure.

Bitcoin Halving: What you need to know

It is estimated that this halving will be a little different from the previous three for several reasons. Overall, there is positive sentiment both before and after the event, which is expected to take place around April 20, which has a mixed impact on the productivity of minersexplains to this medium Pablo MontiBrand Manager for Europe and Latin America at BingX.

And he warns that, although historically said event is linked to significant increases in Bitcoin prices, “This outcome is not guaranteed and is influenced by broader economic conditions than the halving itself.”.

Monti indicates that throughout the first quarter of 2024, We have seen Bitcoin break all-time highs and rise over 60%. “Currently, we are experiencing the five initial stages that lead to the halving”, he maintains. This is because the market has already observed a downward movement, followed by a rebound, and “now we face the retreat phase. After the halving occurs, we anticipate a period of reaccumulation that will lead to an eventual uptrend”, warns the analyst.

In it it is expressed Matteo Taronnaanalyst Bitget, who maintains that the scenario has not changed regardless of all the uncertainty that took over the markets. “It is a fact that the halving is going to cut the Bitcoin reward in half and at the same time it is going to double the average production cost price of 1 Bitcoin, which currently stands at over 38,000, therefore, after the halving, the production price of 1 BTC will be 76,000,” he warns.

The halving and local bitcoiners

Alejandro EstrinCountry Manager of OKX Argentinaresponds to this media’s query that for local individual Bitcoin investors, halving represents an exciting milestonehistorically associated with the beginning of bullish market cycles, in line with other analysts.

And he explains that, although the impact of the halving is difficult to predict with certainty, since the dynamics of the market and Other macroeconomic factors also play a leading role.many are optimistic that the reduction in the supply of new Bitcoins “will ultimately drive prices higher in the coming months and years”.

“For Argentine investorsit will be key to stay informed about technology, apply responsible investment practices and make decisions based on individual financial circumstances and long-term objectives,” Estrin emphasizes. By focusing on the big picture and the transformative potential of this technology, “can position themselves to benefit from the growth and maturation of the cryptocurrency market in the coming years”, he comments.

That the halving does not cover the forest

As mentioned in the first lines of this note, although there are only a few days left until the halving, there are a series of conditions that could set the pace for risk assets, including that of cryptocurrencies and of course, that of Bitcoin, For example, heThe negative data from the US. Let’s see what the experts say about it.

BingX technical analysis shows that Bitcoin has broken the upper limit of its long-term uptrend. “This is a good sign that the currency will continue to rise,” says Monti. However, within this upward progression, there is still room for short-term corrections with respect to current levels.

Once the cryptocurrency surpasses the resistance of $66,000, “we can expect further bullish movement“, and this level could now serve as support in case of setbacks, indicates Monti. Bitcoin, in general, is viewed favorably from a long-term technical point of view and neutral in the medium term.

For his part, Taronna points out that the US inflation data, which was worse than expected, did not impact the price of Bitcoin noticeably, as the value remained within the normal range.

And, as he explains well, three days until the halving and “with many fundamentals affecting the price”, this has remained relatively stable in a range that it has formed from the beginning of March until today, a range which will probably continue for a while longer. “So any Bitcoin price between $73,000 and $61,000 is completely normal.”, he maintains.

Having said the above, and in general terms, Both Bitcoin and market confidence look positive for the rest of the year. Aside from the standard price movements, both positive and negative, it is difficult to imagine a year that results in overall negative sentiment for the largest cryptocurrency on the market, with increasingly friendly regulatory environments and a large number of institutional Bitcoin buyers entering the field, so the answer is yes, This halving promises a lot.