Bitcoin Hits $66,200, Eyes Record Highs Post-Halving

Bitcoin surpasses 200-day SMA, hinting at bullish cycle post-halving with prices soaring above $73,000.

By Bill Bullington

4/23, 08:32 EDT
Bitcoin / U.S. dollar
Marathon Digital Holdings, Inc.
Riot Blockchain, Inc

Key Takeaway

  • Bitcoin's price surged above the 200-day SMA, signaling strong bullish momentum with a current trade at $66,200 and the average at $47,909.
  • Historical patterns suggest intense bullish cycles follow the 200-day SMA surpassing previous peaks; BTC's past rallies post-halving events support this trend.
  • Analysts predict U.S. Federal Reserve rate cuts amid rising government debt concerns could sustain cryptocurrency uptrends despite potential short-term volatility.

Bitcoin Surges Post-Halving

Bitcoin's (BTC) price trajectory has taken a bullish turn, notably surpassing the 200-day simple moving average (SMA) and setting record highs above $73,000 last month. Currently, the cryptocurrency trades at $66,200, with the 200-day average at $47,909, indicating a strong bullish momentum. This movement is significant as historical data suggests that the most intense phase of a bullish cycle unfolds after the average surpasses its previous peak, hinting at potentially more gains ahead. The recent halving event, which reduced the per-block coin emission from 6.25 BTC to 3.125 BTC, is expected to further fuel this uptrend.

Halving's Impact on Supply and Demand

The halving has notably decreased the daily addition of new coins to the Bitcoin supply, with a projected drop in the notional value of new coins added daily to $30 million. This reduction is stark compared to the average daily demand for U.S. spot ETFs, which significantly exceeds the new BTC supply added to the market. The decrease in supply, coupled with a surge in demand, suggests a bullish outlook for Bitcoin's price. Additionally, the shift in investor behavior towards direct custody and the increase in Bitcoin exchange outflows indicate a strong market anticipation of price increases.

Broad Market Rally and Miner Gains

Following the halving, the crypto markets experienced a broad-based rally, with Bitcoin nearing the $67,000 mark and significant gains across various cryptocurrencies and crypto stocks. Publicly listed miners like Riot Platforms (RIOT), Hut 8 Mining Corp. (HUT), and Marathon Digital Holdings (MARA) have seen substantial gains amid increased transaction fees, highlighting the positive impact of the halving on the broader crypto ecosystem. This rally underscores the robust speculative sentiment in the market, driven by the halving event and its implications for supply dynamics.

Market Outlook and Future Trends

Despite the immediate positive reaction to the halving, some analysts caution against short-term bullishness, suggesting potential market weakness ahead. However, historical patterns post-halving indicate a potential for exponential price increases, offering bulls an opportunity to build larger long positions. The cooling off of funding rates for leveraged derivatives traders and negative funding rates for some cryptocurrencies hint at a ripe environment for a swift market upturn, should risk appetite return. This dynamic market scenario presents both opportunities and challenges for investors navigating the post-halving landscape.