JPMorgan just said that the upcoming BTC halving will be a stress test for miners. Check out the latest reports below.

The upcoming Bitcoin halving event will form a crucial test for miners as they navigate reduced rewards and increased production costs, according to JPMorgan.

“Miners with lower electricity costs would find it easier to cope after the halving event, while miners with higher electricity costs could struggle post halving event,” JPMorgan strategists led by Nikolaos Panigirtzoglou wrote in a report on Thursday. Put simply, the halving event will determine miners’ ability to adapt and remain profitable in a changing environment.

Every four years, the Bitcoin halving event takes place. This event cuts the reward for mining new Bitcoin blocks in half, which results in a slower rate of new Bitcoins being created.

The aim is to regulate inflation and keep the scarcity of Bitcoin intact. The next Bitcoin halving event will reduce the block reward from 6.25 Bitcoin to 3.125 Bitcoin.

Bitcoin price predictions

Going by the Twitter handle Bluntz, this analyst has shared with his 223,600 followers that BTC seems to have formed a bearish lower high pattern on its four-hour chart.

Based on this pattern, Bluntz believes that BTC has lost its momentum and is likely to experience an ABC correction, which could cause its value to fall below $28,000.

“Savage four-hour forming here on BTC. I am updating my view a little bit and now expecting a deeper decline, a little bit further than just a simple $29,000 sweep, thinking more like (a move to the) $27,000 zone now.”

An analyst predicts that if Bitcoin follows the trader’s pattern, it will experience a sudden reversal once it reaches its downside target.

The analyst’s chart indicates that this reversal will likely result in a rally that will push BTC above its resistance point at $31,500 and eventually reach around $33,800. Another crypto analyst, Inmortal, also believes that BTC may briefly drop below the psychological support at $30,000 before regaining its bullish momentum.

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