Bitcoin, after retracting from a high of $49,000 to $38,500, has seen an upward trend, crossing the $40,000 threshold. However, prominent crypto analyst Rekt Capital forecasts that Bitcoin will not breach the $46,000 mark in the lead-up to the anticipated fourth block reward halving in April.
Pre-Halving Limit at $46,000
Rekt Capital, an anonymous crypto analyst, has indicated that historical patterns suggest Bitcoin is unlikely to break the four-year cycle resistance of approximately $46,000 before the halving. The analyst projects a change in this trend post-halving, with Bitcoin expected to easily surpass the $46,000 resistance.
At the time of the article’s publication, Bitcoin had experienced a 2.76% increase over the past 24 hours, with a trading value of $43,074.
The block reward halving is a fundamental aspect of the Bitcoin network, occurring every 210,000 blocks, which roughly equates to every four years. This event halves the mining rewards and is instrumental in controlling inflation on the network.
Initiated by Bitcoin’s creator, Satoshi Nakamoto, the halving system has seen the reward per block drop from the original 50 BTC to the current 6.25 BTC. The upcoming fourth halving is expected to further reduce the reward to 3.125 BTC, in line with Rekt Capital’s analysis that suggests Bitcoin’s value will likely hover around or below $46,000 until the halving in mid-April 2024.