Bitcoin recovers as halving countdown attracts attention

The price of bitcoin has recovered to the level of support that drove the bull market in 2023, with nearly nil profit margins for traders. A potential turning point in the decline of the price of Bitcoin is not totally ruled out, though. A week of declining prices for Bitcoin has hurt the cryptocurrency and its traders, but a significant reset is about to occur. The breakeven point for traders’ exchange holdings is now at $60,000.

The most well-known cryptocurrency is currently trading at $63,535 and is up +3.69% as of this writing. Given that unrealized profit margins are currently essentially zero, traders’ pressure to sell bitcoin may be waning. Since they have essentially ran out of profitable trades, it is possible that speculators may now sell less in order to prevent suffering losses.

During a bull market, the realized price for short-term holders has supported prices; it is currently at about $60K. Since BTC/USD started retracing from fresh all-time highs in March, there has only been one brief dip below the $60,000 mark. All-time highs are typically broken by retracements like this one, and the unexpected new peak that occurred just before this week’s block subsidy halving raised hopes for a decline in the price of Bitcoin.

Will Halving Represent Be Good Stimulus for Bitcoin Price?

The once-every-four-year software update for the blockchain that has historically been heralded as a good stimulus for the most well-known cryptocurrency is still a ways off for Bitcoin. Widely anticipated is the quadrennial halving event, which is due as soon as Friday. The price of bitcoin is currently struggling below the resistance zone of $65,000; in order to prevent a significant loss, BTC needs to remain above the support zone of $60,000.

The 100 hourly Simple moving average and $63,000 are being traded below by the price. On the hourly chart of the BTC/USD pair, a significant bearish trend line is forming, with resistance at $62,650 (data feed from Kraken). The pair could gain bullish momentum if it clears the $63,000 resistance zone.

Bitcoin may begin another downturn if it is unable to break over the barrier level of $63,000. Substantial downside support is located close to the $60,800 mark. Sixty thousand is the first substantial support. Price may begin to decline towards $59,200 if there is a closing below $60,000. In the short term, pricing may move towards the $58,500 support zone if there are any more losses.