The flagship cryptocurrency, Bitcoin, has been grappling with bearish pressure following the ETF-engineered rally in early January. However, despite the depressing short-term outlook, many believe BTC could hit $100,000 after the upcoming Bitcoin halving.
BTC trades at $43,100 with a 2% price increase in the last seven days. As the speculations remain, the following analysis will provide insights into Bitcoin’s possible trajectory in the coming days.
Bitcoin Halving: Will BTC Price Skyrocket?
The Bitcoin halving, an event that happens every four years where Bitcoin block reward is slashed by half, is expected in April 2024. Historically, past halving events have preceded big rallies in Bitcoin’s price. For example 2012, the mining reward dropped from 50 BTC to 25 BTC per block.
By late 2013, Bitcoin’s price surged to over $1,000, a massive increase from pre-halving prices below $12. Similarly, the 2016 halving reduced the reward from 25 BTC to 12.5 BTC.
By late 2017, Bitcoin skyrocketed to around $19,000 from less than $1,000 before the halving.
Many experts predict the upcoming halving will also drive up Bitcoin’s price. These past trends indicate Bitcoin could reach a new all-time high in the months following the 2024 halving.
Moreover, the upcoming halving will cut miners’ rewards from 6.25 to 3.125 BTC, a feat that will reduce the influx of new coins, intensifying the forces of demand and supply to drive up prices.
Based on this sentiment and previous trends, many traders expect the price to exceed $100,000. Already, many investors have started accumulating Bitcoin, awaiting the next big rally.
On February 4, Whale Alert, a crypto tracking platform, reported the movement of 1,400 BTC, worth over $60 million, from Coinbase to an Unknown wallet.
Another transfer of 737 BTC worth approximately 31.5 million from Kraken to Bitfinex occurred on February 5. The movement of these large amounts of Bitcoin could indicate high demand as investors store up coins in anticipation of a more significant rally in the coming weeks.
It will likely generate upward pressure to trigger a short-term rally on Bitcoin in the next few days.
Bitcoin Price Analysis: Bitcoin Price Shows Bullish Momentum
BTC recorded a bullish rally this year, climbing from $38,700 to $49,000 on January 11, making over a 13% increase. Since that jump, the price has stayed within the $42,000 and $43,000 range.
Currently, Bitcoin is trading above the simple moving average line, indicating that some bullish activity remains in the market. Just below this moving middle line is strong support at $40,200.
This support level should keep the price from falling if the bulls were to lose control. But looking at the chart, that doesn’t seem likely anytime soon. Additionally, the MACD indicator is above its signal line, meaning bullish momentum currently outweighs the bearish pressure.
Overall, Bitcoin’s chart suggests the uptrend remains intact. The price is above critical support around $40,200, and the MACD shows bulls are in charge.
The upward trajectory should continue as Bitcoin stays above the moving average line and support level. But failure to hold $40,200 could signal a bearish reversal.
Traders hope BTC’s price will increase significantly to usher in a potential bull run as the following halving approaches. But while the ongoing excitement around BTC continues, traders are also paying attention to the eagerly awaited launch of Sponge V2 (SPONGEV2), which promises significant returns.
Bitcoin Alternative: Sponge V2 – The Next Big Meme Coin to Explode in Value
Early Sponge V2 investors hope to earn significant returns for the upcoming launch of Sponge V2, the upgraded version of the popular Sponge coin (SPONGE) that made waves in May last year.
Shortly after its launch in 2023, SPONGE V2 hit a $100 million market cap, surprising investors with impressive gains.
SPONGE had over 13,000 unique wallet holders at its peak. It still has a big following on Twitter and other social media. The upgraded SPONGEV2 token aims to add more utility to Sponge and consolidate the previous success to dominate the meme coin ecosystem.
Happy Friday, #SPONGERS! 🙏
Remember to transition your #SPONGE V1 now before it gets discontinued on the 5th of February.
We strongly advise all holders to withdraw their $SPONGE from centralised exchanges and stake them on our website as soon as possible. 📣📣📣 pic.twitter.com/Zy3AEHtknZ
— $SPONGE (@spongeoneth) February 2, 2024
It introduced staking rewards and play-to-earn features to attract new users and sustain the ecosystem. Current SPONGE holders can switch their tokens to SPONGEV2 by staking their coins on the official Sponge website.
According to the official site, this switching ends today, February 5, 2024.
Users who stake their SPONGE coin can earn staking rewards of up to 290% APY annually. Once SPONGEV2 launches, the old SPONGE token will be discontinued. Its value is expected to be fully transferred to the new version.
This transition encourages current and new investors to join the SPONGEV2 ecosystem.
After the 100x price surge of the first version, analysts remain bullish on Sponge V2’s potential. Given the renewed interest in meme coins, Sponge V2 could gain massive exposure and investor interest when it launches, a move that will skyrocket its price.
You can buy the token for as low as $0.000530 by swapping USDT or ETH on the official presale website.
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Nick Dunn
Crypto Journalist
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