With the Bitcoin halving event only 11 days away, there is a lot of talk around how it could affect Bitcoin's price. Historically, halving, which cuts the reward for mining new blocks in half and thus reduces the rate at which new Bitcoins are generated, has led to bullish movements on the Bitcoin market due to the perceived increase in scarcity.
As we approach this fundamental event, it is worth noting that Bitcoin ETF volume remains strong weeks after Bitcoin's all-time high. This suggests sustained institutional interest, which could be crucial as we near the halving date on April 19. Past halvings have seen Bitcoin's price increase substantially over the following year, although the immediate effect can vary.
Looking at the current Bitcoin chart, we see that it is trading at around $70,794. There is a key resistance level near the recent high of around $69,000, which Bitcoin has tested several times. A break above this level, especially if it coincides with the halving, could signal the beginning of a new uptrend, with traders eyeing the psychological barrier of $70,000 as the next key milestone.
Bitcoin would have to maintain support above the 50-day Exponential Moving Average (EMA) at approximately $57,246 to keep on moving upwards. If it dips below this support, the next significant level is the 100-day EMA around $48,699, which could serve as a strong foothold for the price.
As the halving nears, some traders are looking for a drop-off in ETF and on-chain volume post-halving. If we rely on the previous performance of the digital gold, the reduced supply of new Bitcoins due to halving could lead to an uptrend, as it has in the past. However, each crypto market rally is different, and betting on the performance similar to what we have seen in the past might not be the wisest decision.