(Kitco News) – Bitcoin (Bitcoin) price fell below $65,000 in early trading Wednesday as the crypto market continues to adjust to reduced Bitcoin emissions following Friday’s halving, and looks for the next catalyst to excite traders and make prices rise again.

Investors are also concerned about the earnings season in the stock market, with Tesla seeing its share price rise 12% in early trading after the EV maker promised to accelerate the launch of more affordable models and sparked a change strategy for robotaxis.

Tesla was the first of the “Magnificent Seven” to report profits. Meta (META)’s earnings report will be released after the market closes, and Microsoft and Alphabet will release their report on Thursday.

Data provided by TradingView shows that after rising above $67,000 in the early hours of Wednesday, Bitcoin bears took control of the price and dropped the top crypto to support at $65,000, which is near the middle of the range in which it has been trading since late February.

BTC/USD Chart by TradingView

Previous halvings were followed by a notable pullback in Bitcoin’s price before finally going into a parabolic run, so a drop into the $50,000 range would not be out of the ordinary in the current market.

“BTC price fluctuations after the halving are smoother than some might expect, but it makes sense given that the market has largely priced in BTC’s next surge in March 2024,” said Evgeny Filichkin, investment advisor at neobank Keytom . “Anticipatory hype and notable events like the launch of Bitcoin ETFs played their part in the rate increase. As a result, the initial post-event reaction had already been accounted for, resulting in only moderate price movement.”

Filichkin said the long-term effects on Bitcoin supply, demand and price are still accumulating.

“Historical data from previous halvings suggests that the full impact of these events on the Bitcoin price unfolds over several months to a year,” he added. “Halving often triggers speculative trading cycles, with investors initially pushing up prices in anticipation of tight supply, which can lead to short-term bubbles followed by corrections.”

“This time, too, the recently reduced Bitcoin mining rate can be expected to lead to higher and sustained valuations over the long term as the coin supply becomes more limited,” Filichkin said. “From a strategic standpoint, I predict Bitcoin will reach a valuation of $100,000 within the next six months, with a more immediate target of $80,000 within three months.”

As for the selling pressure that occurred before the halving and the aftermath, Philip Forte, founder and CEO of Elixir, told Kitco Crypto: “There was a bit of trepidation in the market leading up to the Bitcoin halving, with significant selling pressure likely coming. . of Binance transferring its insurance fund to stablecoins.”

“However, market sentiment apparently recovered three days after the lockdown was halved on April 20,” he said.

“Bitcoin mining stocks have risen significantly in recent sessions, with strong producers like Cleanspark ($CLSK) demonstrating the ability to double production post-halving,” Forte added. “Other digital asset-related stocks, such as Microstrategy and Coinbase, also corroborate the market’s broader confidence.”

“We are still early in the evolution of the Bitcoin ecosystem and its participants, as miners scramble for an increasingly scarce asset while competing for fees, Bitcoiners struggle with network congestion and Bitcoin Improvement Proposals (BIPs), and scaling solutions like Bitcoin L2s and cross-chain liquidity layers trying to tap into the largest digital asset class and make it productive, like Ethereum and Solana,” concluded Forte.

At the time of writing, Bitcoin is trading at $65,055, down 2.4% on the 24-hour chart.

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes. This is not a request to carry out any exchange of goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no liability for loss and/or damage arising from the use of this publication.

Fuente