Bitcoin Inches Towards $70,000 Post-Halving: Analysts Eye Long-Term Growth
Summary:
Bitcoin enters the first week of its new halving epoch showing potential signs of recovery, inching closer to $70,000. Analysts speculate that the current market may sprout significant long-term growth post the halving phase. The BTC/USD has pushed beyond $66,000 and has become a primary focus for traders as they await Wall Street's weekly start. This week will also see the release of Q1 GDP and jobless claims, factors likely to stoke volatility. Also notable is that Bitcoin's raw electricity cost per mined block now exceeds the spot price and could trigger shifts in the market. Meanwhile, the Crypto Fear & Greed Index suggests an increase in positive sentiment in the crypto sector.
Bitcoin begins the first week of its recent halving age with potential signs of recovery after teetering closer toward a $70,000 value. In the midst of the new Bitcoin phase, price activity appears to be stabilizing after turmoil and a plunge to six-week lows last week. With traders tested, many are questioning if the market has reached its lowest point.
While price reduction frequently follows halvings, dramatic rebound typically takes months rather than days or weeks, a pattern that several analysts are contemplating. The present cycle has disrupted the norm, with a new record-high for BTC/USD established prior to the actual halving event.
As miners adapt to new conditions in 2024 and Bitcoin continues to navigate a delicate geopolitical and economic climate, the possibilities seem limitless. Looking ahead, Cointelegraph goes over crucial factors that Bitcoin market participants should take into account this week.
Beyond an uneventful week's end, the BTC/USD pushed past the $66,000 limit — a high not seen since mid-April. Now hovering around the $66,000 threshold, the pair is a primary focus for traders anticipating Wall Street's weekly start.
Keith Alan, Material Indicators' co-founder, examined the order book's current configuration and has spotted a sizable chunk of ask liquidity just above the spot price, perhaps put in place to prevent a rally back to the $70k range before traditional finance markets have the opportunity to buy the dip.
While Bitcoin breaks through some of the liquidity at the time of writing, data from CoinGlass shows a majority is stacked around $66,600. Despite reaching weekly peaks, BTC/USD did not result in large amounts of short position liquidations, totaling just $17 million over the last day.
With the halving now complete, analysts are trying to predict Bitcoin's future responses, such as whether it will establish a new norm compared to previous halvings. Rekt Capital suggests BTC/USD is in a consolidation or "re-accumulation phase" around the halving, and argues the current price range could springboard to long-term growth.
Several crucial U.S. macroeconomic prints are set to come out this week, including Q1 GDP and jobless claims, creating potential volatility catalysts. The week will culminate in March's Personal Consumption Expenditures (PCE) Index, closely watched as it is the Federal Reserve's chosen inflation gauge.
Bitcoin’s transaction fees, which at one point passed a near record $200, has fallen under scrutiny. Charles Edwards, Capriole Investments founder, suggested the new halving epoch marks a groundbreaking shift for Bitcoin.
He highlighted that Bitcoin's raw electricity cost per mined block now surpasses the spot price at over $77,000. Edward suggests that Bitcoin's pricing under its electrical cost is an unusual occurrence and straightens out due to a blend of price increase, unprofitable miners closing down, and higher-than-usual fees.
Crypto sentiment appears to be on the rise, judging from the Crypto Fear & Greed Index, currently almost entering the “extreme greed” section at 73/100. Just last week, it marked 57/100, indicating that greed had almost entirely vanished from the radar. This was in conjunction with not only a BTC price reduction but also a significant drop in exchange funding rates and open interest.
Published At
4/22/2024 12:31:50 PM
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