Bitcoin surpasses $65K before halving—Keep an eye on this crucial chart level

Bitcoin, the leading cryptocurrency, surged above $65,000 on Friday, rebounding from earlier losses ahead of the eagerly awaited halving event, anticipated to occur either today or tomorrow. Earlier, the price dipped below $60,000 following reports of Israel's retaliation against Iran. This halving event occurs every four years, reducing Bitcoin's block reward from 6.25 to 3.125 bitcoins, typically resulting in increased value in the subsequent months due to decreased coin circulation.

Nonetheless, Bitcoin has experienced a decline of up to 19% since reaching its all-time high of $73,835.57 on March 14. Some analysts suggest that this sell-off suggests the market has already priced in the impact of the cryptocurrency's halving. They argue that the introduction of recently launched spot Bitcoin exchange-traded funds (ETFs) has enhanced the asset's pricing accuracy, driving it to a new record high before the halving—an unprecedented event in Bitcoin's 15-year existence.

Market analysts also highlight that the present macroeconomic landscape differs markedly from the three previous instances when Bitcoin underwent halving since 2012. During those times, low interest rates and minimal inflation prevailed, contrasting with today's environment of higher rates. These elevated rates diminish the appeal of risk-on assets like cryptocurrencies.

Market analysts also highlight that the present macroeconomic landscape differs markedly from the three previous instances when Bitcoin underwent halving since 2012. During those times, low interest rates and minimal inflation prevailed, contrasting with today's environment of higher rates. These elevated rates diminish the appeal of risk-on assets like cryptocurrencies.

Bitcoin proponents acknowledge that institutional investors have been the driving force behind the recent surge, but they anticipate a shift in sentiment towards bullishness following the halving. They believe this event will attract new retail traders to enter the market. Miles Suter from Cash App expressed this sentiment, stating, "While the recent rally has been led by institutional investors, with past halvings we’ve seen a positive sentiment shift in the market that attracts new retail traders; I think the cycle will repeat itself."

Analyzing the charts, Bitcoin remained within a symmetrical triangle from March to early April before breaking below the pattern late last week, leading to a prevailing bearish sentiment ahead of the halving.

Moving forward, it's crucial for investors to observe whether Bitcoin can maintain its position above the psychological $60,000 mark. This level also coincides with significant support from the key 38.2% Fibonacci retracement level, calculated from the low on January 23 to the high on March 14. Notably, Bitcoin tested this level early Friday following reports of Israel's retaliatory action against Iran. However, it quickly attracted buying interest, suggesting that recent geopolitical tensions may already be priced into the market.