As Bitcoin continues to be a focal point in the financial markets, trading at $61,577 with a 2.50% decrease and a $42 billion trading volume, attention is turning towards companies like Riot Platforms and CleanSpark in anticipation of the upcoming Bitcoin halving event. Bernstein, in a recent research note, identified these companies as top selections due to their strong performance and leadership in self-mining hashrate. The impending halving, expected around April 19-20, will reduce mining rewards by 50% and slow down Bitcoin supply growth. This event historically precedes significant price increases for Bitcoin, although this cycle saw early gains because of ETF approvals earlier in the year.
Recent ETF approvals have stimulated early 2024 price increases for Bitcoin, but a subsequent 15% drop was experienced due to slower ETF inflows. Looking ahead, Bernstein foresees a return to bullish trends post-halving as mining adjustments and renewed ETF inflows drive demand. They have an optimistic prediction that Bitcoin could reach $150K by 2025, supported by increasing demand from wirehouses and registered investment advisors rolling out spot Bitcoin ETFs. The market context suggests that Bitcoin mining stocks have not kept pace with BTC’s price year-to-date, with the halving event intensifying investor focus on companies like RIOT and CLSK.
In terms of Bitcoin price predictions, the current pivot point is at $64,566, with immediate resistance levels at $67,063, $69,394, and $72,732. On the downside, Bitcoin has substantial support at $59,869, with potential lower support levels at $57,135 and $54,359. Technical indicators on the 2-hour chart suggest a bearish sentiment, with the Relative Strength Index (RSI) at 32 indicating potential oversold conditions. The 50-Day Exponential Moving Average (EMA) at $63,850 acts as a resistance level, reinforcing the downward trend observed on the chart. The current market setup shows Bitcoin moving within a downward channel, with $63,850 serving as a significant resistance level.
While Bitcoin remains bullish above its immediate support at $59,869, a breach below this level could trigger a sharp selloff, potentially testing lower support levels at $57,135 and $54,359. Investors and market participants are advised to monitor the situation closely and watch for any significant breakthroughs in either direction. The volatile nature of the crypto market warrants caution, and it is essential to conduct thorough research and seek advice before making any investment decisions. This article serves as informative content and not as investment advice, emphasizing the high-risk nature of cryptocurrency investments.
