Bitcoin Price Prediction as BTC Tumbles to $65,000 Level – Time to Buy the Dip?
In recent trading, Bitcoin (BTC/USD) dipped to $65,394, down by 0.75%, prompting speculation about its next move.
As market watchers analyze the Bitcoin price prediction, the $66,631 pivot point looms large, potentially guiding BTC’s short-term trajectory.
With resistance and support levels tightly bracketing the current price, the market is at a crossroads, weighing the impact of broader economic signals and sector-specific developments.
Bitcoin Miners Power Up Old Rigs as Profits Surge
Bitcoin miners are powering back up, turning previously unprofitable rigs into active contributors to the network’s security and processing power. The hash rate, a measure of computational power, has surged by 14.7% since the start of the year, reflecting the revival of older mining machines alongside the deployment of advanced equipment.
🚨 @DigMinSolutions published a Q1 2024 Bitcoin Mining Review 🚨 Network hashrate is one of the most important indicators when analysing the hashtag #Bitcoin mining industry. This is what happened in the first months of the year:
➡ Network hashrate began the year at 511 EH/s… pic.twitter.com/Fpy0GFNWeH
— Nico Smid (@Smidnico) April 3, 2024
This resurgence has been driven by improved market conditions, with miner revenues hitting a new high on March 10, despite lower transaction fees. However, the stable prices of ASIC mining devices suggest a cautious approach among miners ahead of Bitcoin’s halving event on April 20, which will reduce mining rewards.
This cautious optimism among Bitcoin miners highlights their strategic adjustments in anticipation of market shifts and the upcoming halving event’s impact on profitability.
- Surge in Bitcoin hash rate due to older rigs coming back online.
- Miner revenues peak with contributions from advanced and revived mining equipment.
- Cautious investment ahead of Bitcoin’s halving event signals strategic planning among miners.
Coinbase Teams Up with Lightspark for Swift Bitcoin Lightning Payments
Coinbase is joining forces with Lightspark to incorporate Bitcoin Lightning payments, aiming to offer its 108 million users faster and cheaper transactions. This integration is expected to alleviate congestion on the Bitcoin base layer, which has seen rising fees.
Lightspark’s AI-driven liquidity optimization engine is key to improving transaction reliability and efficiency, focusing on simplified Lightning node management. Although Coinbase had previously announced plans for Lightning integration, this partnership marks a significant step forward.
Has been great working with @lightspark on our Lightning integration which should be launching soon 🙏 https://t.co/KP2CRWZBRw
— Brian Armstrong (@brian_armstrong) April 3, 2024
The move follows Binance’s adoption of Lightning in July, indicating growing acceptance of this technology. While some view Bitcoin primarily as a value store, this development could enhance its functionality as a currency.
- Integration with Lightspark aims to enhance transaction speed and cost.
- Reduced Bitcoin base layer congestion anticipated with Lightning payments.
- Growing acceptance of Lightning technology, reflecting its potential in broadening Bitcoin’s utility.
Market Downturn as Fed Rate Cut Hopes Diminish
Market sentiment has turned cautious with diminished expectations of an imminent rate cut by the Federal Reserve, casting a shadow on the financial landscape. The upcoming Federal Reserve meeting on May 1 is pivotal, yet current market odds, standing at a 97.7% chance, lean heavily against a rate reduction.
Cleveland Federal Reserve President Loretta Mester’s skepticism about a May rate cut, citing the need for clear signs of slowing inflation, reinforces this outlook.
Markets Tumble as Fed Rate Cut Expectations Diminish — #Economics #Inflation #Economy https://t.co/P4RfEww3PE
— Bitcoin.com News (@BTCTN) April 3, 2024
With the federal funds rate at a peak not seen in over two decades, the cost of mortgages and borrowing has escalated, reshaping credit accessibility and economic dynamics.
Although there’s a consensus on a potential rate adjustment in 2024, the precise timing remains a topic of debate among market participants.
These developments could sway investor sentiment and market trends, notably influencing Bitcoin’s attractiveness as an alternative asset, especially if interest rates remain high or are reduced, potentially enhancing Bitcoin’s appeal amidst financial market fluctuations.
- Federal Reserve’s upcoming meeting critical, with a rate cut looking unlikely.
- Investor sentiment and market dynamics could be impacted, influencing Bitcoin’s attractiveness.
- High interest rates bolster Bitcoin’s appeal as an alternative investment amidst market volatility.
Bitcoin Price Prediction
The RSI indicator at 36 and a 50-day EMA of $67,298 hint at a bearish sentiment below the $66,631 threshold.
Notably, a double top pattern at approximately $66,630 and support near $65,000 from an upward trendline suggest a tussle between bearish and bullish forces, with the market’s direction hinging on these crucial levels.
