Reasons Why Bitcoin Might Challenge Its Record High Before Halving

A key technical analysis and data from past cycles entered around halvings indicate that the path of least resistance is higher. The past few months were stellar for Bitcoin, with bulls ignoring a resurgent US dollar and Treasury yields to get the first crypto coin to its highest level in the last 3 years.

A price pullback does look plausible, but it seems like the broader uptrend will continue. Prices are set for revisiting and potentially surpassing Bitcoin’s record high of $69,000 before the halving due on April 19^th.

This is the information provided by the 10X Research after analysing the past data and the technical analysis indicator known as RSI.

Bitcoin’s Bullishness Before Halving

There is a well-known theory about Bitcoin regarding the halvings. It indicates that this cryptocurrency bottoms out 12-16 months before the halving. This theory also suggests that Bitcoin outlines uptrends ahead of and a year after the halving.

But, more importantly, the past 3 cycles that focus on the halving indicate that the prices surged by over 30%. All of that in just 8 weeks before the event, which lowers the speed of supply expansion by 50%. On April 19^th, Bitcoin will halve the per-block reward from 6.25 BTC to 3.125 BTC.

The founder of 10X Research, Markus Thielen, said that Bitcoin is relying on an average of 32%. This is just 60 days before the halving event.

Bitcoin changed hands near $52,000 at press time. In accordance with the past data, a 32% rally from here would mean only one thing. The trading prices could get close to the record high of $69,000 just before the halving occurs.

Thielen stated some other crucial details regarding Bitcoin’s halving. He noted that as we’re getting closer to this event, there is a higher probability that the cryptocurrency will rally. This comes from the evidence provided by the past 3 halving cycles.

The analyst doesn’t believe that things will be different this time. This is because the perception within the crypto community is high that Bitcoin’s halving is bullish. Now, he believes that this perception is flowing into the TradeFi community, which results in aggressive purchases of Bitcoin ETFs.

The Monthly RSI Indicate a Strong Upward Momentum

RSI is a momentum indicator that calculates the speed and changes of price movements over a given period of time. It usually measures these parameters in 14, days, weeks, or month periods. The readings that are above 70 are indicating a strong upward momentum in prices.

Just a week ago, Bitcoin’s 14-day RSI went over 80 for the very first time since December 2023. The past 12 out of 14 such previous RSI results anticipated accelerated upward trends. According to 10X Research, they also produced an average gain of 54% in the next 60 days.

Thielen noted that Bitcoin was trading at $48,294 the last time this signal was triggered. He finished by saying that based on history, this crypto coin could rally to $74,000 according to this signal.