- The Bitcoin price slid below $60k after hitting the resistance level at $65k-$68k.
- Post-halving could lead to a Bitcoin decline in price; JP Morgan predicts a decline to $42k.
- Will Bitcoin break the 2021 all-time high before halving, or will the bears take over?
The Bitcoin price made a significant bull run and recorded a 2024 all-time high after the price reached $64,000. But merely had it reached the $64k level, the price declined significantly below the $60k level. According to analysts, the price of the asset is at the $65-$68k resistance level; this is attributed to the price decline.
Moreover, JP Morgan mentioned that the post-halving impact asset price decline; according to the institution, the halving will negatively impact miners due to low rewards and high production costs. Halving, which is an important event in the landscape of Bitcoin and cryptocurrency at large, is customary to occur in April. Historically, halving is followed by a price correlation before a bull run is witnessed. JP Morgan predicts that miners and cryptocurrency dynamics will face challenging times.
Currently, the average production cost per bitcoin stands at $26,500. Post-halving, this figure is poised to leap to $53,000, reflecting the reduced token issuance and the consequent scarcity. However, JPMorgan’s strategists introduce a note of caution, suggesting that a spike in mining difficulty could temper production costs by 20%, potentially dragging the post-halving price to a lower orbit of $42,000.
The bulls were able to spike the asset price above $63k and $64k before bears flexed their muscles on Thursday and dipped the price below the $60k level to reach the $58,700 mark. The asset, however, increased its price and managed to increase the price by 5% since the dip. The next resistance is seen at the $62,000 level; if bulls manage to escalate the price above the zone, the next resistance zone could be at the $64,000 level. On the flip of the coin, if bears take the charge, the price will be supported at the $58,000 level, and the next support will be at the $53,500 level.
At the time of writing, Bitcoin was trading at the $61,500 mark, recording a decline in price of -2.36%; however, the asset has increased its price by 4.68% since its decline. At the moment, Bitcoin is 13% close to breaking its all-time high.