Bitcoin Price Hits $72k Fueled by Upcoming Halving Event

After experiencing a significant resistance level of around $71,500 in the past three weeks, Bitcoin’s (BTC) price has broken out of the micro-falling logarithmic trend on Monday. The flagship coin rallied more than 4.2 percent in the past 24 hours to trade above $72,400 during the mid-London session on Monday. As a result, the global cryptocurrency market cap topped $2.82 trillion, with the daily average trading volume up around 50 percent to about $150 billion.

Bitcoin Halving at Play

The fourth Bitcoin halving is about 12 days from happening, and miners have been preparing to match up their rigs with the expected increase in mining difficulty. For instance, Bhutan’s investment arm, Druk Holdings & Investments, and Bitdeer Technologies Group announced late last week that plans will increase the country’s mining capacity sixfold by early 2025 to 600 megawatts.

According to analysis data provided by CryptoQuant, the Bitcoin mining costs will double from $40k to around $80k by the end of this month for all common and latest miners, S19 XP.

Increased Institutional Demand

Since the approval of spot Bitcoin ETFs in the United States earlier this year, dozens of financial institutions—led by Citadel, Goldman Sachs, UBS, and Citigroup—have shown great interest in participating. 

Interestingly, China Southern Fund, with over $284 billion in assets under management, has reportedly applied to launch a spot Bitcoin  ETF via Hong Kong. 

What’s Next for BTC Price Action?

Bitcoin’s price broke out of a symmetrical triangle on Monday, signaling the bulls are in control. According to a technical analysis by popular crypto analyst Ali Martinez, based on the four-hour Fibonacci extension, Bitcoin’s price is aiming for $85k.

However, Bitcoin’s price must consistently close above $74k in the coming days to ensure robust bullish momentum.