What To Expect As Bitcoin Price Hits New ATH – $70,000 Before Halving

What To Expect As Bitcoin Price Hits New ATH - $70,000 Before Halving

Bitcoin price made another surprise move on Friday during US business hours, where it briefly escaped the sell wall at $69,000 to touch new highs at $70,000. The largest crypto is standing strong despite calls for a retracement, considering the rally from lows under $40,000 in January.

A massive sell wall in the region between $69,000 and $70,000 is the elephant in the room. It is not clear why some investors are selling in the middle of the bull run, however, most of the selling pressure could be coming from old miners.

How To Navigate Bitcoin This Weekend

After a roller-coaster week that saw a remarkable rally above $69,000 earlier in the week followed by an immediate downturn below $60,000, bulls are back, this time with a bang.

Testing its highest level at $70,000 today proves that Bitcoin has the potential to uphold the pre-halving rally further. FOMO is bound to grip retail investors and other small players with every additional milestone Bitcoin achieves.

Bitcoin price chart | Tradingview
Bitcoin price chart | Tradingview

A robust support has formed between $65,053 and $67,008 according to blockchain analytics by IntoTheBlock.

Approximately 802,000 addresses purchased 687,000 BTC at an average price of $65,960, reinforcing the bullish theory in Bitcoin. The IOMAP shows the absence of significant resistance areas, which could accentuate the rally above $70,000 during the weekend.

Bitcoin IOMAP chart | IntoTheBlock
Bitcoin IOMAP chart | IntoTheBlock

On-chain flows from exchanges are also on an upward trend, underscoring the positive sentiment in the market. Following a slight correction to 18,670 BTC on February 18, aggregate exchange outflow volume has increased to 34,410 BTC.

Investors prefer to hold BTC outside exchanges when they have no intention to sell in the near term. Therefore, increased exchange outflows could signal a reduction in selling pressure, thus propping Bitcoin price for another leg up. Generally, it is a factor that helps to shape the long-term bullish outlook in Bitcoin.

Bitcoin aggregate exchange outflow volume | IntoTheBlock
Bitcoin aggregate exchange outflow volume | IntoTheBlock

Bitcoin Price Rally: The ETF Effect

It is almost two months since the Securities and Exchange Commission (SEC) approved the first spot Bitcoin ETFs in the US. The ETFs led by the best-performing BlackRock’s IBIT have exceeded expectations, reaching milestones that took gold ETFs many years to achieve.

With a cumulative total net inflow of $9.37 billion, according to SoSoValue, demand for BTC is growing at an unexpected rate. Sentiment is also holding steady with more players — institutional and retail turning to Bitcoin the crypto as well as the ETF.

Bitcoin ETF stats | SoSoValue
Bitcoin ETF stats | SoSoValue

Eric Balchunas, Bloomberg’s ETF analyst said in a recent interview that the growth of the ETF is attributed to asset managers willing to buy in, growing retail interest, and the “ETF effect.”

An ETF effect refers to a situation where people anticipate more inflows while booking positions to capitalize on potential price increases. According to Balchunas, IBIT is breaking off from the rest and is likely to end up as the most successful ETF.

Should Bitcoin close the day above $68,000, traders would be eyeing the next closes above $69,000 and $70,000, respectively to validate the uptrend. Further price movement beyond $70,000 could ignite a parabolic rally toward $100,000 ahead go the halving in April.

The post What To Expect As Bitcoin Price Hits New ATH – $70,000 Before Halving appeared first on CoinGape.


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