The much talked about halving event for Bitcoin is anticipated to take place on the 20th of April, but before speculators sell BTC/USD blindly they should know a couple of details.
- The price of BTC/USD as of this writing is near the 61,775.00 level, the high for the week in Bitcoin was on Monday when the price of the digital asset was slightly above the 67,000.00 ratio.
- BTC/USD has not only made news in the past few months because it has been challenging record values, such as the high seen on the 14th of March around the 73,964.00 value, but because Bitcoin is about to undergo a transactional halving.
This does not mean monetary value of Bitcoin is about to be cut in half, what it means is that ‘companies’ which ‘mine’ Bitcoin will only receive half the value they have been getting the past four years regarding the process of generating the digital currency. The change in computer coding is anticipated to take place around the 20th of April and will impact Bitcoin mining operations. The potential knock on effect caused by the halving should be watched by speculators.
Ramifications of Value as Halving Occurs in Bitcoin is Speculative
While the value of BTC/USD has lowered the past couple of weeks, the explanations why this loss of price has occurred is not entirely clear. On the 7th of April the price of BTC/USD was still above 72,000.00. This price had been achieved as the regular give and take of speculative forces in Bitcoin was creating dynamic changes in value to the digital asset as it always does.
However as anticipation of the halving within the mining code of Bitcoin has reached fever pitch the price of BTC/USD has certainly come down. Whether this is a coincidence or not is not necessarily provable. Yet, it is possible mining operations and other holders of Bitcoin may be engaging in selling of BTC/USD which could be driving down values as they anticipate the change of profits and cost ramifications.
Complex and Questionable Value as Always in Bitcoin
Again, the price of BTC/USD is not going to be officially cut in half when the change of coding takes place for mining companies involved in Bitcoin. Yet the operational price for these companies is certainly going to have an effect on their profitability. The cost of mining the digital asset is important and this is also affected by higher energy costs. Speculators who are tempted to sell BTC/USD on the notion mining companies will try to cash out some profits of their Bitcoin holdings in the near-term may be making a logical gamble, but there are no guarantees. The price of Bitcoin could certainly go up too if enough speculative force enable a rush of buying.
- BTC/USD did fall below the 60,000.00 level yesterday, touching the 59,800 mark momentarily.
- The last time BTC/USD had touched this lower level was late in February and the first week of March.
- When the halving does officially take place via an announcement about the coding change, the price of BTC/USD could grow even more volatile than normal, which means day traders will need to be extremely cautious via their wagers on the digital asset.
Bitcoin Short Term Outlook:
Current Resistance: 61,995.00
Current Support: 61,100.00
High Target: 64,550.00
Low Target: 56,750.00
Ready to trade Bitcoin in USD? We’ve shortlisted the best MT4 crypto brokers in the industry for you.