Bitcoin Surges Past $27,000 Resistance as BTC Investors Eye This Level Next – Here’s How Price Reacted Around Previous Halvings
Bitcoin broke above $27,000 resistance on September 28th, marking a key milestone for the cryptocurrency. This comes after Bitcoin successfully retested support around $26,000, fueling bullish momentum. Now traders are eyeing the next cluster of moving averages in the $30,000 range as the next potential resistance level.
This price action comes just 200 days away from Bitcoin’s next halving event expected in April 2024. Historically, Bitcoin’s price has risen significantly in the months around the halving:
What you'll learn 👉
2012 Halving:
- Halving Date: 28 November 2012
- Price at the Start: $12
- Price 100 Days Later: $42
- Price 1 Year Later: $964
- Observation: The price did not immediately react to the halving but started to grow steadily at the beginning of 2013, reaching above $1,100.
2016 Halving:
- Halving Date: 9 July 2016
- Observation: The price increased noticeably starting at the end of May 2016, a month and a half before the halving, and experienced a correction in mid-June. After the halving, the price fell again to May levels but later continued a bullish trend, reaching an all-time high of $19,700 on 17 December 2017.
2020 Halving:
- Halving Date: 11 May 2020
- Price at the Time of Halving: $8,787
- Observation: The price did not immediately react to the halving. The price reached its all-time high of nearly $69,000 by November 2021.
Halvings occur every 210,000 blocks mined and reduce the Bitcoin block reward given to miners by 50%. This cuts the rate of new Bitcoin production and serves to make existing Bitcoin more scarce. The impending reduction in selling pressure from miners is believed to be a catalyst for Bitcoin’s historical pre-halving rallies.
Now traders are anticipating whether history will repeat again before the 2024 halving. Some key technicals indicate there could be more room to run. The relative strength index (RSI) has peaked after every halving, but the strength of these peaks has declined over time. This suggests the RSI could peak at a lower level during the current cycle.
However, if Bitcoin’s price rise is greater than the 1.382 Fibonacci extension projected for this cycle, it could disrupt this pattern and result in a higher RSI peak. Most estimates point to a peak occurring near the end of 2024 to early 2025 if historical cycles hold.
So while Bitcoin has cleared a key resistance level following recent consolidation, the road ahead to the 2024 halving could still be full of volatility. But if history repeats, Bitcoin’s price may continue trending upwards over the coming 200 days in anticipation of reduced selling pressure from miners after the next halving.
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