The Bitcoin Halving Is Set To Happen in April 2024, Here’s What To Expect

Bitcoin is making headlines once again as it surpasses the $52,700 mark, showcasing strong demand for BTC. According to on-chain data analytics firm CryptoQuant, over 75% of new Bitcoin investments are flowing through spot Bitcoin ETF,  highlighting the growing interest in the cryptocurrency.

As Bitcoin continues its upward trajectory, market analysts are turning their attention to the upcoming April 2024 halving event. Speculating that the price could skyrocket to reach its all-time high (ATH) of $69,000, last seen in November 2021.

Reduction in Minning Rewards

The last halving in 2020 brought a reduction in the block reward to 6.25 BTC, sparking a 30% decline in Bitcoin’s hash rate within 2 weeks. Despite the initial dip in the hash rate, the system quickly adapted, and within just seven weeks, the hash rate reached new all-time highs.

After the May 2020 halving, the price of Bitcoin started going up a lot, reaching a new high in just 8 months..

Halving Effects on Bitcoin Supply

Fast forward to the present, where the upcoming halving promises transformative changes. The rewards issued to miners per block will be halved, reducing from 6.25 BTC to 3.125 BTC. 

However, this move aims to reduce Bitcoin’s inflation rate from 1.7% to 0.85% per year. Although Meanwhile, an expected dip in Bitcoin’s hash rate shortly after the halving is expected. 

Meanwhile, the reduction in issuance of new bitcoin supply means miners might sell less. History shows that after halving, miners sell less, lessening their impact on the market.

Apart from this, expected FED rate cuts, and strong interest from major institutions in Bitcoin, there is a projected 85% chance of Bitcoin reaching its all-time highs in the next six months.

Bitcoin Price Analysis

Amidst the excitement, bitcoin faces resistance near $52,000, but bullish momentum persists, as indicated by the upward-sloping 20-day exponential moving average ($46,947). Conversely, a dip below the 20-day EMA may indicate a short-term reversal.

Meanwhile, the relative strength index (RSI) above 81 suggests a rapid rally in the near term. If the price maintains above $52,000, a rally to $60,000 is expected.