Bitcoin has uptick to $50k as the article is being drafted. More surges could be on the way; however, traders may want to be cautious about where the prices move on the graph. Bitcoin is looking to hold the price steady prior to the Halving event. There is low selling pressure now, and the task is to sustain a higher buying pressure. That will pave the way for a larger price rise.
Things working for Bitcoin are Ordinals and a new interest in Bitcoin-based applications. There is a positive shift in the way in which the community now perceives the use cases of the network and the strength of basic fundamentals. Grayscale has confirmed this in its research note that was made public last week. The crypto management firm has signaled a bullish run before the Halving event. It could be larger than what has been in the past.
Halving, simply put, is a process where Bitcoin brings down the mining rewards and controls the supply of tokens. Thereby making them rare and expensive. This fuels the rise in the price every four years.
Michael Zhao is optimistic that the halving will be fundamental despite short-term miner revenue challenges. Zhao is also confident about Bitcoin becoming more substantial than digital gold.
Ordinal inscriptions and BRC-20 tokens are credited with revitalizing on-chain activity on the network. They have generated $200 million in transaction fees as of February 2024. Ongoing innovations and renewed developer interest are likely to keep up with the trend.
Bitcoin ETF applications were approved on January 10, 2024, and they have been able to bag more than 192,000 tokens in holding. The token is exchanging hands at $50,050.46, with a surge of 3.97% in the last 24 hours. Funds have attracted billions of dollars from investors. They can now gain exposure to the token without buying it or storing it. More traders and investors are expected to get their hands on BTC.
It was down to ~$40,000 when the selling pressure was at its peak. With that phase gone, or rather eased off, Bitcoin is looking to sustain the buying pressure to maintain the current price on the board. The approval of Spot Bitcoin ETF has paved the way for other crypto ETF applications to make their way into the market.
Despite the momentary downfall of Bitcoin after its approval, the crypto community speculates that other crypto ETFs will bring a bullish run to their holdings. The next in line is ETF, probably by the end of this year. Till then, Zhao estimates that the selling pressure will cool off further when the mining rewards are cut in half. There is a requirement of $14 billion in a year to keep the buying pressure safe.
The next support level for BTC is its ATH, which is somewhere around $65,000.