Bitcoin has bounced back after a correction yesterday. As of 08:30 UTC, Bitcoin was up by 2.54% to trade at $70,844.
Bitcoin Bounces Back After Brief CPI-Triggered Dip
Bitcoin bounced back after dropping to $67,600 yesterday. The cryptocurrency’s price fell following the release of US inflation data, which led to selloffs in various markets worldwide.
Post US CPI damage in Asia. Stocks are down, bonds are BURNING pic.twitter.com/MsnaUR5EPT
— David Ingles (@DavidInglesTV) April 11, 2024
The Dow Jones Industrial Average plummeted by 500 points on April 10 after the US Consumer Price Index (CPI) revealed that inflationary pressures remained persistent in the American economy.
Bitcoin’s quick turnaround may have solidified investors’ confidence in its ability to withstand high inflation. Market observers believe that its upcoming block-halving event in under ten days is boosting bullish momentum.
Halving Optimism Driving Retail FOMO
The optimism around the halving is evident in the increasing retail interest in Bitcoin. Data shows that small Bitcoin holders are buying more ahead of Bitcoin’s halving. Addresses with between .001 and one BTC accumulated a net of 1,908 BTC over the past week after an extended period of selling two months ago.
🚨 Extra! Extra!
Retail investors are back & have been buying #Bitcoin for the last 7 & 30 days! ✅ pic.twitter.com/hfcgKcdcqt
— HODL15Capital 🇺🇸 (@HODL15Capital) April 11, 2024
This trend suggests growing retail FOMO as the halving approaches, analysts say. Institutional investors appear similarly confident about Bitcoin’s long-term future. ETF inflows spiked by $125 million on April 10 alone.
Today: 1785 #Bitcoin ( $125M) In Net ETF Buying 🔥 pic.twitter.com/X0MObsvfF3
— Thomas | heyapollo.com (@thomas_fahrer) April 11, 2024
The Possible Entry Of Chinese Institutional Money
There is growing chatter in the markets that Chinese institutional money could be coming into Bitcoin soon. Hong Kong is said to be laying the groundwork for Bitcoin ETFs similar to those currently offered in the US. Given how big the Chinese crypto market is, this is a big deal
. For context, many analysts believe the 2020 Bitcoin bull run could have led to much higher prices than $69k had the Chinese government not banned crypto. With the possible return of Chinese money when institutional demand is on the rise globally, Bitcoin can quickly push through $75k and possibly test prices unseen before – even as high as $300k.
This convergence of retail and institutional interest also reflects a more significant shift toward digital assets as reliable investments during periods of uncertainty around fiat currencies and traditional markets. With its decentralized nature and limited supply cap, Bitcoin has emerged as an attractive hedge against these issues for individual and institutional investors.
Overall, Bitcoin is gaining bullish momentum after a correction on April 10. It indicates that the halving hype is much stronger than the inflation news from the US.
Bitcoin Bounces Back From Key Support With High Volumes A Bullish Signal
Bitcoin’s correction yesterday saw the number one cryptocurrency test critical support at $67,640.87. However, strong buying momentum at this level saw Bitcoin bounce off it with high volumes. If Bitcoin continues its current momentum, the next critical level to watch will be the week’s high of $72,780.86. If Bitcoin pushes through the $72,780 resistance, then prices as high as $75k could be within reach today.
However, if Bitcoin’s volumes drop, two scenarios could play out in the day. The first would be a consolidation between $69,671 and $72,780 before another breakout follows.
On the other hand, if Bitcoin bears take control in the day and push BTC through $69761 support, then a retest of the $67640 support could come into focus within the day.
Bitcoin Price Prediction – The Case For $75k Is Getting Stronger
While any of the three scenarios above can play out today, the odds are higher that Bitcoin could be headed for a breakout to $75k or higher. One pointer to this is that the market has rebounded strongly after yesterday’s high inflation news. It indicates that investors expect Bitcoin to do well despite current market conditions.
Besides, there are fundamental reasons that support such optimism. The Bitcoin halving is coming up in less than ten days, meaning the supply of Bitcoin entering circulation through mining rewards will be cut in half. This is coming at a time of rising institutional demand, and retail money means the price can only increase. The bullish case is strong for Bitcoin both in the short and long run.