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Will Bitcoin Price Plunge To $56,000 Pre-Halving
Bitcoin halving will take place around April 20 according to most blockchain calculators, including CoinGecko. As a rule, there will only be 21 million BTC in existence and in a bid to control inflation, upholding asset scarcity is paramount.
Halving ensures the continued release of new coins while increasing scarcity by reducing the number of coins miners receive as a reward for processing transactions and securing the network.
Bitcoin has been programmed to halve every 210,000 blocks or roughly four years. The miner rewards which started at 50 BTC will reduce to only 3.125 later this week.
In addition to controlling inflation, halving is regarded as a market mover. Bitcoin price tends to rally immediately after halving but the most important is the bull run that follows several months later due to the supply crunch and increasing demand for BTC among investors — retail and institutional.
This halving is expected to be like no other with demand likely to surge exponentially due to the ETF in the US and Monday’s approvals in Hong Kong.
Therefore, if investors have a long-term overview of the market and not just the halving day, buying the current dip is still viable.
However, those interested in short-term price movement must study the market and consider the current geopolitical tensions in West Asia, which saw Bitcoin price retest $60,000 last weekend.
Bitcoin Price Analysis As $61,000 Support Steadies
The support highlighted in the Bitcoin price today on Monday, has been respected by the intraday price action on Tuesday.
Bitcoin is attempting a rebound from the grey marked area but traders eyeing long positions must wait until the seller congestion due to Monday’s open at $63,495 and the ascending trendline is resolved to avoid sudden pullbacks, which may result in more losses.
