Bitcoin has finally reclaimed the $8K price level, with many analysts and commentators now convinced that it has cemented its pre-halving bull run. This price level has not been seen since March 12’s major price crash.
On April 29, the flagship token gained at least 5% as the solid week of gains continues to dominate the markets. Data acquired from CoinMarketCap showed BTC/USD surpassing the $8K level after a seven-week absence. The latest move firmly reverses Bitcoin’s crash in mid-March when the crypto lost 60% within 24 hours to test the 15-month lows of $3,600.
At the time of writing, the new BTC price levels were yet to cement themselves amid short-term volatility with highs on Bitstamp exchange, reaching over $8,100. The latest success in the crypto market comes after a steep uptick of 10% in the past seven days, with 50-day and 200-day moving average resistance now seemingly conquered.
One analyst reported on April 29 that the next primary zone in which to gain a strong foothold is located at around $8,500. A few days ago, one analyst filbfilb said that breaking the confluence of resistance located at $8K might prove to be a tall order for the bulls. He explained that:
“There is a tight cluster of moving averages overhead in the Bitcoin price charts; the 100-DMA, 200-DMA, 20-WMA, Yearly VWAP, 61.8% Retracement, Yearly Pivot. Nevertheless, it appears like Bitcoin is persisting for more. Any form of a squeeze in PA will eventually result in volatility/expansion. With time, the trend will form, and the next price action will dominate the BTC markets.”
Halving Is Now Mainstream
In the meantime, bitcoin is majorly beating the dollar and stock markets according to the current-year gains. Currently seated at around 9.5%, the flagship token is on the heels of gold’s 12.1% performance. The excitement seems to be growing less than two weeks before Bitcoin’s third block reward halving.
The halving event is set to drop the inflation rate of Bitcoin to 1.8% and halve the available supply of new Bitcoins released within a span of every ten minutes. This event is already a source of interest that goes beyond crypto. The mainstream media is eyeing it as a probable source of a “new class of Bitcoin millionaires.”
Analysts and commentators have mixed opinions about the halving’s impact on the price. PlanB, the creator of the stocks-to-flow (S2F) forecasting model, is convinced that the miners have already priced in any revenue shifts.
A majority of the people think that the bitcoin price will rise after the halving; which may result in high levels of FOMO. Nonetheless, when people realize that the halving event may not affect the price of the token in the short term; colossal sell pressure will follow actively.
Hence, traders are advised to remain calm the entire time and have a viable plan while they plan to invest as the halving affects the markets.