Bitcoin Halving Event May Lead BTC to New All-Time High Amid Explosive ETF Interest
Summary:
Bitcoin (BTC) is demonstrating a bullish potential as it heads towards a halving event due in less than 70 days. Factors including historical price patterns, increasing flows into Bitcoin exchange-traded funds (ETFs), and a favorable technical setup point at BTC hitting a new all-time high. As BTC's value broke the $50,000 mark, its market capitalization crossed a significant milestone of $1 trillion, indicating a 118% increase over the past 12 months. With Bitcoin ETFs witnessing vigorous capital inflow, industry experts suggest this rapid adoption symbolizes the maturation of the crypto sector akin to traditional asset classes.
As Bitcoin's (BTC) forthcoming halving event approaches, factors such as its past price tendencies, the growing popularity of Bitcoin exchange-traded funds (ETFs), and a promising technical setup indicate that BTC is carving a path towards a fresh all-time high. While 2023 was a generally positive year for Bitcoin, 2024 welcomed the sanction of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC), driving up the prices of Bitcoin, Ether (ETH), Solana (SOL), and other cryptocurrencies. With Bitcoin's rally surpassing $50,000, its market valuation crossed the milestone of $1 trillion, achieving a total of $1.02 trillion on February 16 — a 118% lift over the past year.
Bitcoin's value has likewise seen a 110% rise during this timeframe. The imminent halving event, predicted to occur in less than 70 days, is considered by many traders to be a key influence on Bitcoin's price. Bitcoin prices traditionally follow a cyclical pattern, with historical data offering insights into plausible future trends.
A bullish cycle similar to those experienced in the past is expected for Bitcoin, since it tends to follow four-year cycles, often stimulated by pivotal events like the halving, which limits the issuance rate of BTC. The ensuing halving event is predicted to take place around mid-April 2024, slashing the BTC rewards traced to miners per block from 6.25 BTC to 3.125 BTC.
Historical data suggests that the halving positively impacts Bitcoin's price and bull run. It can start months before the halving event – as is currently evident – and can continue until the BTC price achieves a new peak. This theory is supported by Rekt Capital's explanation of the "5 Phases of The Bitcoin Halving," with the final phase, the “parabolic uptrend,” witnessing an exponential increase in BTC price towards new all-time highs.
Similarly, independent investor Lady of Crypto anticipates that Bitcoin’s parabolic uptrend will operate for 7 to 8 months after halving, with BTC shattering records highs in November 2024. Investment manager Timothy Peterson of Cane Island Alternative Advisors concurs with this forecast, proclaiming that Bitcoin will reach the milestone of $100,000 by August.
Still, while some traders argue the forthcoming 2024 halving will be the most significant ever, others anticipate a different outcome. Meanwhile, Bitcoin ETFs are witnessing robust capital inflow, collecting $4.5 billion in little over a month since trading commenced on January 11.
Despite initial outflows from GBTC exceeding total inflows into the new ETFs, the wave seems to be turning, signified by BlackRock's IBIT recording one of the most triumphant ETF launches in history, with over 100,000 BTC assets under management by February 13. A fervent demand for Bitcoin ETFs is observed with roughly $450 million inflows seen each day.
Also, Tristan Dickinson, Head of Marketing and Communications at dYdX Foundation, credits the swift uptake of Bitcoin ETFs for BTC's surge over $50,000, signaling the maturation of the crypto sector and cementing BTC as an asset class akin to gold. Hebrew also noted the forthcoming halving event indicating potential signs of a bullish market.
On the technical side, Bitcoin's price chart has shaped a rounded bottom chart pattern on the weekly chart. If a weekly candlestick closure breaches this level, a bullish breakout will ensue, sending BTC into price discovery.
The relative strength indicator (RSI) for Bitcoin is moving towards the overbought region, approaching the 80-point mark and cementing the bull's control over the market. The Exponential Moving Averages (EMAs) also produced a bullish intersection on the weekly chart. Aksel Kibar, a trader, identified Bitcoin trading in a rising parallel channel on the weekly chart, predicting a potential rise to $65,000 and beyond if it breaks above the channel.
This news does not include investment advice or suggestions. Every investment and trading decision involves risk, and individuals should perform their own inquiries before deciding to invest.
Published At
2/16/2024 10:42:55 PM
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