Bitcoin has reached a 17-month high, marking levels not seen since May 2022. The surge has taken many by surprise, and it’s attributed to two key factors: the upcoming Bitcoin halving and the anticipation of a Bitcoin exchange-traded fund (ETF) hitting the market.
Bitcoin halving is on the horizon, just six months away. The crypto community believes this event will trigger the next bull market. Analysts like Michaël van de Poppe suggest that now is an excellent time to invest in alternative cryptocurrencies (altcoins), with venture capitalists eager to provide funding.
Miners, on the other hand, are concerned about the halving because it will reduce mining rewards by 50%, from 6.25 BTC to 3.125 BTC per block. Despite miner concerns, investors are excited because the halving reduces the rate at which new Bitcoins are created.
However, mining expenses have been rising over time due to more complex and costly infrastructure, increased electricity rates, and potential taxes on US miners. The US dominates Bitcoin’s hash power, which is essential for the network’s operations.
As of the time of writing, Bitcoin is priced at $34,572, and it has the potential to rise further as momentum remains strong. The price has doubled since the end of the previous year, surging past key retracement levels, such as the 61.8% Fibonacci at $28,067 and the 78.6% Fibonacci at $31,197. With increased buying pressure, Bitcoin could target $35,000, and the top of the Fibonacci chart at $35,184 is the logical aim.
Technical indicators like the Relative Strength Index (RSI) and the Awesome Oscillator (AO) suggest that momentum is still increasing. However, a potential downturn could find support at $31,197 or even $28,067, with the worst-case scenario being a drop to $25,869.
In summary, Bitcoin’s recent price surge to a 17-month high is likely driven by a combination of factors, including the upcoming Bitcoin halving and the expectation of a Bitcoin ETF. This has led to a bullish sentiment in the market, with potential for further price increases.
