After pulling back from $49,000 to $38,500, the largest cryptocurrency Bitcoin (BTC) has once again moved upward, surpassing the $40,000 level. Experienced cryptocurrency analyst Rekt Capital has suggested that Bitcoin will not be able to break above $46,000 after the recent surge.
Pre-Halving Limit at $46,000
Anonymous cryptocurrency analyst Rekt Capital commented on Bitcoin from his personal account, stating that the largest cryptocurrency will not break the $46,000 mark before the expected fourth block reward halving in April, noting “Historical data shows that Bitcoin cannot break the four-year cycle resistance of approximately $46,000 before the block reward halving.”
Rekt Capital emphasized that this outlook will change after the block reward halving, adding that BTC will then easily break the resistance around $46,000. The analyst shared that the four-year cycle resistance for Bitcoin is at the level of $46,041.
At the time of writing this article, Bitcoin has risen by 2.76% in the last 24 hours, trading at $43,074.
Approaching the 4th Block Reward Halving
The block reward halving of Bitcoin is an event where the mining rewards in BTC on the network are halved, occurring every 210,000 blocks. This happens at regular intervals, approximately every four years, and is a significant feature that reduces inflation on the Bitcoin network.
The Bitcoin block reward halving is part of the network design established by the creator of the largest cryptocurrency, Satoshi Nakamoto. The Bitcoin network uses a reward system based on the creation of new Bitcoins through mining. Initially, the reward per block was 50 BTC, but this amount is halved every 210,000 blocks.
The first block reward halving occurred in 2012, reducing the reward from 50 BTC to 25 BTC. Subsequent halvings took place in 2016 and 2020, and currently, the reward per block is 6.25 BTC. According to data provided by the largest cryptocurrency exchange Binance, Bitcoin’s 4th block reward halving is expected to occur around April 15, 2024, reducing the block reward from 6.25 BTC to 3.125 BTC. This aligns with Rekt Capital’s analysis based on historical data, indicating that Bitcoin will likely stay around and below $46,000 until mid-April but could surpass this level after the halving event.
