Bitcoin surged to its highest level since November 2021 on Monday, fueled by the growing interest in exchange-traded funds dedicated to the cryptocurrency. Investors are eagerly anticipating the upcoming "halving" event, a historical catalyst for bullish momentum in bitcoin prices.

Bitcoin's Latest Performance

Bitcoin, represented by the ticker symbol BTCUSD, recorded a 9.5% increase over the past 24 hours, soaring to nearly $57,000 at its peak, as reported by CoinDesk data. Despite being down 17% from its previous all-time high of $68,990 in November 2021, the digital currency continues to attract significant attention from investors.

Factors Driving Bitcoin's Growth

The approval of 10 bitcoin ETFs by the U.S. Securities and Exchange Commission in January led to a surge in capital flowing into bitcoin. Additionally, the looming "halving" event, expected to take place in April, has sparked optimism among market participants.

Understanding the Halving Mechanism

Known as halving, this blockchain algorithm feature regulates the supply of bitcoin, which is capped at 21 million coins. During halvings, the reward for bitcoin mining is reduced by half, resulting in miners earning 50% fewer bitcoins for verifying transactions.

Historical Significance of Halvings

Halvings occur approximately every four years after every 210,000 blocks are mined until the full supply of 21 million bitcoins is in circulation. Past data suggests that bitcoin tends to experience price surges following these halving events.

Technical Outlook and Price Analysis

Breaking free from its sideways trading pattern since February 10, bitcoin is poised to hit targets near $58.4 initially, with a potential climb to $62k—the last major resistance level before approaching previous record highs. Mark Newton, the head of technical strategy at Fundstrat Global Advisors, expressed these views in a note issued on Monday.

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