Crypto traders and investors are bracing themselves for a spike in volatility as the time before Bitcoin’s second halving approaches 10,000 blocks. The halving is a key economic mechanism in the tokenomics of Bitcoin that introduces scarcity through a planned occurrence that halves the reward for mining new blocks. These times have historically sparked notable bullish runs, and this time around, investors are all wondering if Bitcoin will finally break through the illusive $50,000 barrier.
At the moment, Bitcoin is trading at about $48,000 after making a spectacular comeback from earlier declines. A consistent upward trend that has broken through resistance levels with a confident bullish momentum has been the defining feature of this recovery. But as the halving draws near, conjecture and past trends point to a possible price spike that may perhaps surpass the $50,000 barrier.
Local support and resistance
As of right now, $46,000 remains a stable important local support level for Bitcoin. This barrier provides a dependable safety net in the event of price retractions and has been tried and true. Conversely, Bitcoin is confronted with a strong resistance level at about $49,500, which if broken might indicate a considerable continuance in the bull market.
Growth scenario
In the wake of the halving, Bitcoin’s value may soar well over the $50,000 obstacle, if the historical tendency after such events holds true. A price increase might be fueled by a decrease in new supply and an increase in demand, particularly from institutional investors. Should this turn out to be the case, market sentiment may surge and a retest of all-time highs may occur.
On the other hand, a “buy the rumour, sell the news” situation might occur if the market expects the halving event too much, setting up a decline scenario. In such a case, the price of bitcoin may drop back to its level of support or even lower if macroeconomic conditions worsen or if regulatory obstacles get stronger.
