SNEAK PEEK
- Bitcoin halving may increase demand, leading to a price rise.
- A high fee-to-rewards ratio suggests network security and miner incentives.
- BTC/USD is in an uptrend, with potential resistance at $32,000 and support at $28,000.
As the 2024 Bitcoin halving approaches, investors are concerned about the possible effect on the $BTC price. The Bitcoin halving is a four-year occurrence that halves the reward miners earn in half. This decrease in supply has typically been followed by an increase in demand, resulting in a rise in Bitcoin’s price.
4/5 The current spike in the fees-to-rewards ratio suggests the market has entered another accumulation cycle, similar to 2019 & 2020.
This indicates a potential price rally leading up to the 2024 #Bitcoin halving. ? pic.twitter.com/SrU2ouJMNh
— Ali (@ali_charts) April 12, 2023
The fees-to-rewards ratio is essential to the Bitcoin network’s financial viability. This ratio is calculated by comparing the fees paid by users to miners to have their transactions included in the blockchain to the block rewards collected by miners for adding new blocks to the network. A high fee-to-rewards ratio suggests a robust and sustainable network, while a low ratio may result in diminished miner incentives and possible security problems.
Consequently, the rise in the fees-to-rewards ratio shows that the network is becoming more secure and appealing to miners, which might lead to more adoption and future growth. This action improves investor and trader trust in BTC since it is a favourable indicator of the network’s health and potential for long-term success.
Bitcoin (BTC) bulls have effectively swept the bears under the rug the previous week, surging prices from an intra-week low of $27,738.76 to an intra-month high of $30,462.48 in only a few hours. This bullish trend was still there as of press time, with prices rising by 0.27% to $30,042.41.
The Keltner Channel bands on the 7-day BTCUSD price chart are increasing, with the top channel at $29307.46, the middle channel at $24212.74, and the bottom bar at $19117.47. This movement indicates that BTCUSD is in an uptrend and that the price may continue to rise. Traders may try buying BTCUSD on falls towards the middle or lower channel, with a stop loss below the lower channel to mitigate risk.
The advancement of the price action above the upper bar and the formation of three green continuous candlesticks with a reading of $30216.51 indicate that the bullish momentum is gathering strength and that there is a possibility for higher movement.
With a Rate of Change reading of 38.57, the current price is increasing faster than the previous period, which further supports the possibility of a continued upward trend.
If the intra-month high of $30,462.48 is breached, the next resistance level may be at $32,000, a significant psychological level that could attract more buyers into the market, driving the price even higher. However, if bears push the price down, the next support level could be $28,000, which has acted as a strong support level during previous price corrections.
In conclusion, Bitcoin’s upcoming halving and rising fees-to-rewards ratio signal potential for long-term success, while the current uptrend and technical indicators suggest a possible price rise towards $32,000.
Disclaimer: Cryptocurrency price is highly speculative and volatile and should not be considered financial advice. Past and current performance is not indicative of future results. Always research and consult with a financial advisor before making investment decisions.
