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Less Than 10,000 Blocks Until Bitcoin Halving: Will BTC Break $50,000?

source-logo  u.today 12 February 2024 14:21, UTC

As the countdown to Bitcoin's next halving ticks below 10,000 blocks, crypto investors and traders are getting ready for a volatility surge. The halving, a scheduled event that slashes the reward for mining new blocks in half, is a fundamental economic mechanism designed to introduce scarcity into Bitcoin's tokenomics. Historically, these periods have catalyzed significant bullish runs, and this time around, the question on every investor’s mind is whether BTC will break the elusive $50,000 mark.

Currently, Bitcoin hovers around the $48,000 mark, following a remarkable recovery from previous dips. This resurgence has been characterized by a sustained uptrend, breaking past resistance levels with an assertive bullish momentum. However, as the halving approaches, speculation and historical patterns suggest a potential price surge, possibly breaching the $50,000 threshold.

Local support and resistance

At present, a critical local support level for Bitcoin stands firm at $46,000. It is a threshold that has been tested and held strong, offering a reliable fallback during price retractions. On the flip side, Bitcoin faces a formidable resistance at approximately $49,500, a line that, if crossed, could signal a significant bullish continuation.


Growth scenario

Should the historical trend following halvings hold true, Bitcoin could see its value catapult well above the $50,000 resistance in the aftermath of the event. The reduction in new supply, coupled with increasing demand, especially from institutional investors, could fuel a price ascent. If this scenario unfolds, we could witness a retest of all-time highs as market sentiment soars.

Conversely, a drop scenario might come into play if the market overly anticipates the halving event, leading to a "buy the rumor, sell the news" outcome. Such a scenario could see Bitcoin’s price retrace back to its support level, or further if macroeconomic conditions sour or if regulatory headwinds intensify.