Bitcoin Comfortable Near $70,000 ahead of Halving Event
Bitcoin is up slightly but may have trouble going much higher for now as it loses its momentum following the new all-time high record.
Over the last few days, Bitcoin (BTC) has stayed close to its new all-time high and hovered just under the $70,000 mark.
Will that become the new base level for Bitcoin? It seems the token cannot push past $70k, but it has not lost a lot of the recent gains either. The bulls pushed Bitcoin to a new all-time record and then sold off their coins, leaving the token around $67,000 for Friday.
Heading into the weekend, it looks like there is very little momentum to keep Bitcoin pushing any higher. As of press time, BTC was up 1.38% from the previous day, at a price of 67,937 (BTC/USD). With trade volume down 17%, the impetus has drained.
Over the last 30 days, Bitcoin has gained 51%, so there is great potential for long-term growth this year, but the short term forecast looks stale. Federal Reserve testimony from Chairman Jerome Powell was mildly positive. No interest rate cuts are coming now, but they could come in the near future. That barely moved the needle over on the stock markets, and it will not do a whole lot for Bitcoin and the crypto market other than keep investors from panic selling.
Upcoming Halving Event
Bitcoin will be halving in April, making it harder to mine the coins at the current level. Miners will get back only half as many coins for the same amount of effort, and that could drive the price up considerably as new Bitcoin becomes a little rarer.
Investors are looking forward to the halving to extend Bitcoin shelf life for value and spur trading. It could give Bitcoin a shot in the arm at a crucial time when interest from the new all-time high has faded.
With Bitcoin looking comfortable at its current level, it may be tough to purchase it at a deep discount. One analyst- Charles Edwards of Capriole Investments- says that Bitcoin is entering a new chapter where it will no longer sink far below its current level. He expects the current level to be about as low as Bitcoin will go for a long time, and if that is true, investors might have missed their chance to squeeze huge value out of the token.
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