Bitcoin is making new highs, and bullish momentum is on the rise. As of 10:40 GMT+3, Bitcoin was trading at $71,000. Trading volumes are also rising by 66% to hit a high of $43.07 billion.
The upside momentum in the price of Bitcoin has a lot to do with the rising demand for Bitcoin as the halving draws nearer. Investors anticipate that with the reduction in supply expected to come with the halving, BTC could be headed much higher. Some analysts project that Bitcoin could be headed to prices above $200k after the halving.
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#Bitcoin just closed with one of the highest weekly candle closes ever in history
Up only imminent 🤝 pic.twitter.com/ffIvRbzPIB
— Mags (@thescalpingpro) March 11, 2024
Institutional Demand Remains Strong
Besides speculation around the potential impact of Bitcoin halving, the actual demand for Bitcoin is rising at the retail and institutional levels. Since January, there has been a consistent flow of institutional money into Bitcoin, running into hundreds of millions of dollars flowing into Bitcoin going into Bitcoin every day.
A Generational Shift In Wealth-Building Approaches
At the retail level, Bitcoin continues to see a rise in demand, especially among millennials. With the Fed indicating that inflation remains high, millennials are turning to Bitcoin as the best way to grow wealth as holding cash has little value in an inflationary environment.
Shocking how low Under 40yr old allocation is to #StockMarket.
Buying #Bitcoin and #Crypto instead?
American equity culture crushed by ’08?
If Millenials have lost faith in existing system, will they turn attention instead to building/owning the Digital Asset Ecosystem. pic.twitter.com/VCTFsCCg5P
— Dan Tapiero (@DTAPCAP) September 4, 2020
Also, with inflation remaining high, many millennials are increasingly priced out of the housing market, a primary way past generations have used to build wealth. Bitcoin’s element of scarcity, which gives it a clear path to value growth, has now become one of the major investment vehicles for building wealth.
As the price of Bitcoin continues to rise and hype builds up around the halving, more of this institutional and retail money will continue to flow into Bitcoin. Demand for Bitcoin could also be getting a boost from countries that are buying up. Edward Snowden recently hinted that a country has been buying Bitcoin, which will be revealed this year. With a country like El Salvador now poised to join the list of wealthy countries thanks to Bitcoin, many other countries could follow suit, further adding to the demand for an already shrinking supply of Bitcoin.
The price of Bitcoin has breached $70k as demand builds up from different quarters ranging from retail money to institutions and governments.
Bitcoin Breakout Through $69,800 Points To Rising Bullish Momentum
The price of Bitcoin has broken through the $69,836 resistance, and buying volumes are rising.
If buying volumes remain high and Bitcoin sustains the momentum it has built up in the day so far, then the odds of Bitcoin testing a high of $100k in the week are high.
However, two scenarios could play out if buying volumes drop in the day. The first is a possible consolidation between $71k and $69,800, now a critical support level in the day.
On the other hand, if bears take control in the day and manage to breach the $69,800 support, then prices around $67k could be tested in the day.
Bitcoin Price Prediction – Why $100k Is In The Cards
While there is a chance that Bitcoin could consolidate or even turn bearish in the day, the odds of a continuation of the upside momentum are higher, with $100k as a realistic short-term target.
Several factors support a potential surge in the price of Bitcoin to a high of $100k in the short term. One of them is institutional investors’ continued demand for Bitcoin. This demand is relatively high, especially when more than 75% of the Bitcoin in circulation is illiquid.
Then, there is the element of FOMO by retail money. Bitcoin has surpassed its all-time highs, and upside momentum is rising. This has seen the amount of media attention on Bitcoin rise. With the growing media spotlight on Bitcoin, so has FOMO from retail money looking to get in ahead of the halving. This surge in demand from different quarters places Bitcoin in pole position to hit $100k in the week.
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