The long-awaited Bitcoin halving event has happened, cutting the mining rewards for the largest cryptocurrency in half. Even as the crypto community examines this market potential, certain analysts are painting a positive picture of Bitcoin’s price direction in the next few months.
At the top of the list is Moustache, a widely known crypto analyst who is eyeing at $80,000 to $85,000 as a significant milestone for Bitcoin. It should not be a surprise to his fans since Moustache has been vocal about it since 2022 and considers it as one of the critical interim objectives on its rise.
While $80,000 may seem lofty, on-chain data from IntotheBlock suggests Bitcoin is well-positioned for a potential upswing. The analysis platform reveals that BTC is currently trading in a key demand zone, with over 1.66 million addresses having purchased the cryptocurrency at an average price of $64,800. This substantial cluster of buyers could provide a robust support level, acting as a springboard for further gains.
Impact of the 4th Bitcoin Halving
The halving event, which occurs every four years, is a pre-programmed reduction in the mining rewards distributed to those who secure the Bitcoin network. This deflationary mechanism is designed to control the supply of new coins entering circulation, with many anticipating that the scarcity will drive prices higher over time.
According to insights from CryptoCon, the latest halving marks the first time Bitcoin has approached new all-time highs in the aftermath of this pivotal event. Historically, there was a long period of stagnation after the halving until significant rally pushes prices to new cycle tops. However, Bitcoin is already trading at record levels and some analysts think this cycle may get shortened leading to its peak by December 2023 instead of the usual four-year time span.
Halving promises increased scarceness while bringing new bitcoin miner dynamics as reported by CryptoQuant that transaction fees on the halving day reached an all-time high of over $80 million. With mining rewards having been cut in half, miners are getting “overpaid” through these higher charges, given that they are used for network adjustments to this novel economic state.
Nevertheless, other analysts, including Moustache, are calling for an upward momentum that will ensure Bitcoin reaches new heights following the halving. The only thing we have to do now is wait and see if scarcity will once again push this leading digital currency to great levels.
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