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Bitcoin Price Prediction – $70k In Sight As BTC Demand Outstrips Supply

AuthorKamal Masri
Financial Market Expert
Fact Checked by Wajeeh Khan
Last updated: April 23, 2024
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Bitcoin Price Prediction – $70k In Sight As BTC Demand Outstrips Supply

Bitcoin continues its gradual ascent days after the block halving. As of 08:22 UTC, Bitcoin was holding firm above $66,000 and rising. This steady rise post-halving is driven by increasing demand, particularly from institutional investors.

ETF Inflows Remain Net Positive

Yesterday, Bitcoin commenced the week with positive ETF inflows totaling an impressive $62.2 million. Among the major players contributing to this influx were BlackRock with $19.7 million, Fidelity with $34.8 million, Ark with $22.6 million, and others. It illustrates a significant shift towards institutional adoption. However, it’s noteworthy that Grayscale reported a withdrawal of $35.0 million, significantly lower than the outflows it has experienced in the past. 

Institutional Demand Post-Halving Signals Rising Confidence

The influx of institutional investments is a significant indicator of confidence in Bitcoin’s future trajectory, both in the short term and in the long run. By bolstering demand at a time when the mined supply entering circulation has been halved, Bitcoin could potentially witness an exponential surge in its price in the coming days.

Standard Chartered Analysts Hold Their End Year Projection At $150k

Analysts echo this sentiment, with many increasingly bullish on Bitcoin’s prospects. Standard Chartered Bank analysts maintain their prior predictions, affirming that Bitcoin remains on course to end this year at $150,000 or higher. Such projections serve as a confidence boost, catalyzing further capital inflows into Bitcoin in the foreseeable future.

More Countries Looking To Make Bitcoin Legal Tender

Moreover, the global embrace of Bitcoin is gaining momentum. Following El Salvador’s pioneering move to adopt Bitcoin as legal tender, Paraguay is now eyeing a similar leap into the crypto sphere. Reports indicate that Paraguay is exploring the possibility of making Bitcoin a legal tender.

The country has a new bill proposing the introduction of a digital version of the local currency alongside Bitcoin as an “experimental legal tender.” This initiative, spearheaded by the government party, underscores a growing acceptance of cryptocurrencies on a national scale.

Bitfinex Points To Demand Outstripping Supply

Exchange data reveals a striking trend where post-halving Bitcoin demand is surpassing available supply. Bitfinex estimates suggest that demand post-halving could be five times greater than the available supply. This demand-supply disparity, coupled with over $2 billion in short positions hovering around the $71,000 mark, sets the stage for a potential short squeeze. Such a scenario could propel Bitcoin’s price to soar to $100,000 or higher in a remarkably short time.

In conclusion, Bitcoin’s gradual rise in the aftermath of the block halving signifies good times ahead for the cryptocurrency. With institutional investors increasingly buying into Bitcoin, analysts maintaining optimistic projections, and countries embracing Bitcoin as legal tender, the stage is set for Bitcoin to reach new heights in the days ahead potentially.

Bitcoin Edging Closer To $71,663 Resistance, Signals Rising Bullish Sentiment 

Bitcoin is approaching the crucial $71,663 resistance level, following a rebound from the $61,099 support post-halving. The $71,000 price level coincides with an accumulation of over $2 billion in short positions, setting the stage for a potential short squeeze scenario. Should Bitcoin successfully breach the $71,663 resistance, it could catalyze a rapid rally toward the $80,000 mark either today or soon.

Bitcoin Edging Closer To $71,663 Resistance

However, the outcome hinges on critical factors such as trading volumes. A sustained increase in trading volumes would bolster bullish momentum, potentially propelling Bitcoin beyond the $71,663 resistance level. Conversely, a decline in volumes could signal a lack of conviction among traders, leading to a consolidation phase between the $71,663 resistance and the $61,099 support in the short term.

If bears gain control of the market, attention would shift back to the $61,099 support level. A breach of this level could pave the way for a swift descent towards the $57,000 region in the short term, signaling a bearish trend reversal.

Overall, Bitcoin’s current price action suggests an impending breakout or breakdown scenario, with the $71,663 resistance and the $61,099 support levels serving as critical pivot points. Traders and investors should closely monitor trading volumes and market sentiment to gauge the direction of Bitcoin’s next major move.

Why A Breakout To $80k Could Be Coming Soon

While Bitcoin could breakout in any direction, the odds of a bullish breakout are higher. That’s because demand post-halving is increasingly outstripping supply. This is likely to see Bitcoin keep closing higher every day until FOMO comes in and pushes the price to new highs. 

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