Bitcoin continues trading in range for the third day in a row. In the last 24 hours, Bitcoin has been trading between $65,283 and $73,574.52. As of 09:02, Bitcoin was trading at $67,076.01, and trading volumes rose by 21% to $36.85 billion.
Bitcoin’s continued consolidation indicates that the market is undecided on where Bitcoin could go in the short term. However, there are indicators that the overall sentiment is increasingly favoring bulls. That’s because there has been a lot of pressure on the $65,283 support throughout the week, but the Bears have been unable to break it.
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This shows that while there are a lot of short sellers, around $65,283, an equally massive number of buyers are taking up all the selling volumes around this price level.
These buying volumes are coming from both retail and institutional money. Throughout the week it has happened for months since the ETFs were approved, and Bitcoin buying volumes have been consistently on the rise. It shows that institutional money is still keen on Bitcoin despite the signs of weakness that have been there since Bitcoin was rejected at $70k.
Demand From Institutions Remains High
Even as sellers continue to pile pressure in the market, the high buying volumes are based on solid fundamentals. One of them is the rising legitimacy of Bitcoin in the financial markets. In the past, Bitcoin was an outlier in the financial markets.
🔸The biggest banks are reaching out to #Bitcoin miners directly to buy Bitcoin because of “supply shortages on exchanges” – CEO of Hut8 Mining pic.twitter.com/ca2AceiLXx
— Radar🚨 (@RadarHits) April 5, 2024
However, since the ETFs were approved in January, they have become mainstream assets in financial circles. This has seen more institutional money take an interest in it. Evidence of this is that Goldman Sachs recently said that there was an increase in Bitcoin by its institutional clients, especially hedge funds. This and the fact that the BlackRock ETF now has upwards of $10 billion in Bitcoin is an indicator of the mainstream nature of Bitcoin.
Since adoption is still low, and the odds high that companies could follow Tesla and MicroStrategy in adding Bitcoin to their balance sheets, the odds of exponential growth over time are high.
The Halving Is Coming Up
This rising demand is coming in an environment of decreasing supply. Every four years, the amount of Bitcoin entering circulation is usually cut in half. The next halving is coming in under two weeks and is expected to cut Bitcoin mining rewards to 3.125.
In the past, Bitcoin halving has led to a surge in the price of Bitcoin by up to 3X. This time, the odds of an even bigger rally are high. That’s because, unlike in the past, Bitcoin demand comes from multiple quarters ranging from large financial institutions, retail, and even countries. This and the extremely low mining rewards post-halving could easily push Bitcoin higher by up to 5X.
Bitcoin has held onto the $65,285 support despite constant pressure due to the rising demand from multiple quarters ahead of the halving, which is coming up in about two weeks.
BTC Key Support Holding Strong A Pointer To Underlying Bullish Sentiment
Bitcoin is currently consolidating between $65,283.03 support and $73,574.52 resistance. While there is a lot of pressure on the $65,283.03 support, it has held on through the week, indicating rising buying momentum. If buying volumes increase and Bitcoin breaks the $73,574.52 resistance, then prices above $80k could become a reality over the weekend.
However, if Bitcoin volume drops in the day, then BTC could continue with the rangebound trading going into the weekend.
On the other hand, if short sellers take control and push Bitcoin through the $65,283.03 support, Bitcoin could quickly test the $61k support over the weekend.
Bitcoin Price Prediction – The Case For A Bullish Breakout
While any of the three scenarios above can play out today or on the weekend, the odds are higher that Bitcoin could be headed for a bullish breakout. That’s because, despite multiple attempts at a critical support level, bears have failed an indicator that the underlying demand for Bitcoin is high.
This could inspire bullish confidence in the market and trigger a rally through the $73,574.52 resistance. In such a scenario, Bitcoin can easily hit $80k or more within the weekend.
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