Bitcoin and Ethereum recently faced some unexpected fluctuations just before the Bitcoin halving event on Friday. However, they have managed to stabilize after this period of correction. Despite predictions from many analysts that miners would sell off their holdings due to the decreased rewards, the price of Bitcoin actually moved in the opposite direction, climbing towards a peak of $66,000.

Bitcoin Transaction Fees Crashed Down

Bitcoin (BTC) began the week on a stable note, holding above $66K, with a notable decrease in transaction fees following the halving. According to on-chain data from Mempool.space, medium-priority transactions now cost $8.48, and high-priority transactions are priced at $9.32.

Following the halving, transaction fees initially soared, with medium-priority transactions hitting over $146 and high-priority transactions reaching $170. The hashprice index, devised by Luxor to measure earnings per unit of hashrate for miners, fell from $182.98 per hash/day to $81, dipping below its pre-halving level.

Although bitcoin miners expected the halving to significantly reduce their revenues, the launch of Casey Rodarmor’s Runes protocol—aimed at generating fungible tokens on the Bitcoin network—launched with the halving. This development was intended to counterbalance the revenue drop by boosting on-chain activity.

The launch of the Runes token on the Bitcoin blockchain coincided with the fourth Bitcoin halving, resulting in a surge in miner revenue to a record $107 million on that day. Despite a 50% reduction in block rewards, the introduction of the Runes protocol, which facilitates the creation of fungible tokens, increased miners’ income.

Prior to the halving, Bitcoin miners were typically making between $60 and $70 million daily from subsidies and transaction fees. Yet, on April 20, revenue jumped to $107.75 million, even though the subsidy per block was halved, as per Blockchain.com. Glassnode data shows that about 75% of this amount, or $80 million, was generated from transaction fees alone, marking new highs. This might reduce any selling pressure from miners, creating chances for further upward correction in the coming hours.

What’s Next For BTC Price?

Bitcoin price has successfully broken above the EMA20 trend line, aiming for a retest of the $70K level. The price has broken above several Fib levels; however, sellers continue to defend immediate support lines. 

If the price surpasses the ascending resistance line, it suggests that the pair might consolidate between $67K and $70.5K for some time. For further gains, bulls need to push the price beyond the key resistance levels to pave the way for a potential rally to $74,000.

Should the price sharply decline from the moving averages, it could indicate that bears are actively selling during price rallies. This may trigger another test of the support zone ranging from $64,775 to $59,600. Buyers are likely to defend this area, as a breach could potentially lead to intensified selling. Under such a scenario, the BTC/USDT pair could drop to the 61.8% Fibonacci retracement level at $54K. 

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