Bitcoin price has been hovering around is first all-time high of $69,000. There is a struggle between bears and bulls at the $71,000 resistance level. Investors are eagerly optimistic that bulls will soon emerge victorious as the Bitcoin halving event draws near. There are even predictions that the ‘king of cryptos’ will reach a new peak prior to the historic event. Let’s explore further to discover the reasons behind this.
Current Market Performance of Bitcoin Price
The current Bitcoin price is $69,712.16, having dropped by 1.05% over the last 24 hours. The past week has been a rollercoaster for the coin, recording a slightly growth in value by 2.3%.
Despite this, its performance in the last 30 days has been impressive with a noticeable increase of21.96 percent. When observing the year so far, BTC has had an impressive performance with a growth of 157.68%. Its trading volume has risen by 14% to reach $41 billion in the last 24 hours. This indicates a notable level of trading taking place in the market related to the coin.
With a market cap of $1.37 trillion, Bitcoin remains the top cryptocurrency, as reported by CoinMarketCap. Digital gold holds the majority share of the world’s cryptocurrency market at 52.26%, totaling $2.62 trillion, and has a circulating supply of 19.67 BTC.
Reasons Behind Bitcoin Price Aiming a New All-time High Before Halving
Let’s discuss the factors that are propelling BTC to a new peak before halving takes place.
1. Analysts Prediction of Bitcoin Price
According to Ali, a crypto trader and analyst, there is a resistance barrier posing as Bitcoin’s price movement. This barrier exists between the price range of $70,180 and $70,600. In this range, there are around 292,000 addresses that hold a total of 397,000 bitcoins. These numbers indicate a significant amount of selling interest among Bitcoin holders, which creates resistance against further price increases.
If Bitcoin manages to surpass this resistance barrier, it is likely to continue its upward trend and potentially reach new all-time highs. Breaking through this barrier signifies a change in market sentiment, where buyers outweigh the selling pressure from holders within this price range.
Another analyst Michaël van de Poppe notes in a tweet that Bitcoin is currently in a consolidation phase, which means its price is stable or moving sideways. He believes that Bitcoin might be approaching the highest point of its current upward trend. However, he predicts that before a major correction occurs, Bitcoin might test its all-time high one more time, possibly reaching a price range of $75,000 to $80,000 before the next halving event.
#Bitcoin consolidating.
I think that we're close to the peak of this run, but I think we'll have another ATH test, perhaps even $75-80K pre-halving and then we're correcting.
During that consolidation / correction phase, I expect altcoins to outperform. pic.twitter.com/bnQjYuIzrr
— Michaël van de Poppe (@CryptoMichNL) March 27, 2024
2. Bitcoin’s Open Interest (OI)
According to CoinGlass data, Bitcoin’s open interest has reached a record high of $37.81 billion, up from $26 billion on March 1. The rise in open interest indicates a rise in market participation and interest in Bitcoin futures contracts. When open interest hits an all-time high, it usually signals a high level of trading activity and can suggest increased market confidence or speculation about future price movements. The jump from $26 billion to $37.81 billion in a short period implies increased trading activity and potentially growing bullish sentiment among investors.
3. spot Bitcoin ETF inflows
Bitcoin’s price is greatly affected by spot ETF inflows. Despite a recent increase, only $151 million in leveraged short positions were closed in BTC futures markets. Bears have been careful despite a significant $888 million withdrawal from U.S. spot Bitcoin ETFs. Bitcoin’s resilience was shown in its bounce back from approximately 17% decline without causing alarm among spot ETF investors. The large inflows into spot ETFs before the April halving are considered a major factor in BTC’s new high, highlighting the importance for bulls to keep an eye on trends. This week, there was a positive change in spot ETF flows, with $418 million in net inflows recorded on March 26. Institutional demand remain strong.
4. Bitcoin is the Middle of the Bull Run
Grayscale reports Bitcoin is amidst a bull run, with its dominance leading the way for altcoin surges. Factors include spot Bitcoin ETF inflows, stablecoin inflows, and decreasing BTC balances on exchanges, creating positive market dynamics. The latest rally, breaking all-time highs, was fueled by on-chain fundamentals and stablecoin supply growth. Decreasing BTC supply on exchanges and Grayscale holdings signal a potential continuation of the bull market. Bitcoin’s NUPL ratio nears historical peak levels, driven by retail euphoria and FOMO. Retail interest is lower than 2021, but sentiment analysis hints at a possible return of retail investors, supporting a prolonged bull run.
Conclusion
As Bitcoin price continues faces resistance at $71,000, the market is experiencing a tug of war between bears and bulls. With the highly anticipated halving event drawing closer, optimism prevails among investors, with predictions abound that Bitcoin may establish a new peak before the historic event. Various factors, including analysts’ predictions, rising open interest, spot ETF inflows, and Bitcoin’s position in the midst of a bull run, contribute to this sentiment. As the market eagerly awaits the outcome, the resilience and potential of Bitcoin remain firmly in focus.
The post Top 4 Reasons Why Bitcoin Price Might Hit a New All-time Before Halving appeared first on CoinGape.
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