Bitcoin (BTC) moved up to challenge $7,000 on April 22 as support at $6,800 held and price analysts began to count down to the halving.
Cryptocurrency market daily overview. Source: Coin360
BTC price bounce relieves bulls
Data from Coin360 and Cointelegraph Markets showed a stronger 24 hours for BTC/USD, which on Tuesday averted heavy losses to bounce off $6,800.
Chaos on oil markets had accompanied Bitcoin’s slide from near $7,200, an area plagued by heavy resistance levels.
Bitcoin 1-day price chart. Source: Coin360
For Cointelegraph Markets’ filbfilb, that zone was a key level to conquer in order to position Bitcoin in a more bullish stance. $7,200 is the price at which the cryptocurrency began the year.
“I'm still long to 7k and change and will then reassess the situation. I don't want no position in Bitcoin at the moment,” he told members of his Telegram trading channel.
“We are c. 3 weeks from the halving. We still don't know if Bitcoin is trying to be a safe haven or a risk on asset. It is showing some signs of decoupling from being risk on which is good.”
“Full steam ahead” to halving
The longer BTC/USD can stay above $6,800, he continued, the less likely the pair is to fulfill more dire expectations and fall back to levels around $4,000 or $5,000.
“If bitcoin can reclaim that yearly VWAP level of 7200 during the week (i.e. not just on a weekend) then it's full steam ahead for the halving IMO,” he wrote.
As Cointelegraph reported, plenty of factors remain in play which can influence Bitcoin prices in the run-up to the halving in around three weeks’ time.
The event will have a significant impact on supply versus demand — to keep the current price point after the halving, demand could technically fall by 50% as well as the block reward.
Conversely, demand staying the same should produce an increase in the price, as Bitcoin is impossible to mine more quickly simply because more buyers wish to acquire it.