Bitcoin Steady at $70k, but Could Move Faster Closer to Halving

Bitcoin is holding at $70,004 (BTC/USD) right now, down just 0.92% from Tuesday. It looks like this may be a new resistance level for the coin, as it had trouble moving past that mark on Tuesday as well.

This is likely a case of investors saying they would sell at that level, but we know the whales are keeping their Bitcoin hoards and hoping for a new record high, which would be above $73,750.

Many major crypto investors are forecasting that the coin will move to $100,00 in the near future. While that number was expected for the halving to take place now in less than a month, it does not look likely. We may see $100,000 before the end of the year, but the also anticipated $150,000 level for 2024 seems to be out of the question right now. Bitcoin has simply stayed between $60,000 and $70,000 for too long for there to be enough momentum built up for that kind of gain.

How Halving Will Affect Bitcoin

When Bitcoin mining goes through a halving cycle, what tends to happen is that the value shoots up. Bitcoin becomes more difficult to mine at the same rate, so the market cap rate will slow.

About every four years, Bitcoin goes through this event, and the amount of bitcoin produced by mining is cut in half. This is to slow down the production of Bitcoin so that the finite supply is not exhausted too soon. Only a limited number of bitcoins can ever be produced. That is built into the code, and halving pushes the timeline back for when that will happen.

There is usually a trading frenzy around the time of the halving, both before and after. Whether that is caused by the halving itself or the perceived value and supply changing is a matter of debate.

Something else that tends to happen at that time is that the number of miners will decrease. Because they are not able to mine as much bitcoin with the same amount of effort as before, they see less return on their investment. Some of them will step away from mining, which can make Bitcoin even more precious and valuable.

As we get closer to the halving time, taking place in approximately 24 days, expect to see the price ramp up.