The BTCUSD quotes moderately declined on Tuesday after updating their April high the previous day.
According to Coindesk, the upcoming halving, which will reduce the reward for a mined block from 6.25 BTC to 3.125 BTC, supports the price of Bitcoin. This event is expected as early as April 20.
In recent weeks, open interest in Bitcoin futures has been sustained at record highs, exceeding $25 billion.
Past halvings have been catalysts for significant growth in the price of the major cryptocurrency.
The first Bitcoin halving occurred on November 28, 2012, when the reward for miners was reduced to 25 BTC. Over the next year, the price of the digital currency rose from $12 to $1,075 (by 8,858%).
The second halving occurred on July 9, 2016, reducing the reward to 12.5 BTC. In a year since that event, the price has risen from $650 to $2,560, (by 294%).
The last halving took place on May 11, 2020. It brought mining rewards to 6.25 BTC per block, and over the next year, the cryptocurrency rate rose from $8727 to $55847, or by 540%.
From a technical point of view, the BTCUSD quotes are forming a new uptrend on the D1 timeframe.
In terms of wave analysis, the price is forming the third ascending wave on the H2 timeframe. The breakthrough of the top of the first wave at the level of 71,600 has already taken place. This could strengthen the bullish movement in the near term. Positive Bulls Power (standard values) indicates the uptrend.
Signal:
The short-term outlook for the BTCUSD pair is to buy.
The target is at the level of 80,000.
Part of the profit should be fixed near the level of 73,800.
The Stop-loss could be placed near the level of 66,800.
The bullish trend is of a short-term nature, so it is suggested to limit the trading volume to no more than 2% of your capital.
This content is for informational purposes only and is not intended to be investing advice.
