After nearly two weeks of consolidation, Bitcoin broke out with high volumes. In the last 24 hours, Bitcoin has pushed through $70k with high volumes. As of 08:06 UTC+ 0, Bitcoin was trading at $70,922.85, up by 2.10%.
Technicals Paint A Bullish Picture
Bitcoin’s breakout was predictable, and technical analysis is the trigger that has caused a lot of investors to pour money into Bitcoin in the last 24 hours. Throughout last week, Bitcoin was rangebound between $70k and $65k. Bears tried multiple times to push it through the $65k support but failed, indicating they were losing momentum.
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Then, going into the weekend, volumes dropped as Bitcoin formed a symmetrical triangle, indicative of a potential breakout. This all pointed to a bullish breakout, and with buyers rushing to take positions, it has become a self-fulfilling prophecy. Today, Bitcoin has broken out in a parabolic price move that has seen Bitcoin push through $71k and keep increasing while in press.
Billions In Short Positions Providing Liquidity
Still, on the technical side, there has been a buildup of short positions between $72k and $75k in the last two weeks. At some point last week, these short positions stood as high as $3.4 billion. This presented the perfect scenario for a short squeeze and is happening now. As these shorts provide liquidity, Bitcoin could quickly push through $75k in a few long candles in a short squeeze. The fast-rising Bitcoin price in the early hours of Monday morning trading points to this happening in real-time.
Halving Hype Is Getting Stronger
Besides the technicals preempting this breakout, the fundamentals are increasing, pointing to a significant upside move for Bitcoin throughout the week and going forward. One of them is that the Bitcoin halving that has triggered price rallies of up to 3X is 11 days away. Investors expect it to trigger another rally, and the hype is getting stronger.
Good morning!
Let me know if your ready!#BitcoinHalving2024 #Bitcoin pic.twitter.com/KoXOMHyHju
— Richie (@CryptoDetonator) April 8, 2024
For instance, the Bitcoin halving has been a top trending topic on social media, especially on X, for the last 48 hours. This means that a lot of people all across the globe are talking about halving and actively anticipating it. Even physical billboards anticipating the halving are coming up. For instance, Thailand has put up a giant clock counter for the upcoming halving.
Institutional Money Is Getting Hungrier For Bitcoin
In addition to the fact that retail FOMO around Bitcoin is on the rise, institutional money continues to pile into Bitcoin through the ETFs. Last week ended positively for the ETFs, with the BlackRock ETF recording inflows of $300 million on Friday.
This is likely to keep driving up demand for Bitcoin at a time when most investors are not willing to sell their Bitcoin in anticipation of a halving-driven rally. A lot more buying is happening than there is selling at the moment.
Who needs to see this? #Bitcoin pic.twitter.com/oE6BBX2pGn
— Thomas | heyapollo.com (@thomas_fahrer) April 8, 2024
This is evident because around 1% of Bitcoin’s total supply has been bought at prices above $60k. It is an indicator that people believe that even at current prices, Bitcoin is undervalued and could be headed to higher prices in the short term and the long run.
Overall, Bitcoin is in a breakout, confirming what the technical indicators have predicted throughout the weekend.
Bitcoin Breaks Out Bullish Amid A Surge In Buying Volumes
After trading in a narrow symmetrical triangle yesterday, Bitcoin has broken out through the $69,761 resistance with high volumes. With the high number of shorts, around $71k and $75k, Bitcoin has a lot of liquidity to feed into it, and this is evident in the fast-rising nature of its price in the last couple of hours. If this momentum, then Bitcoin could hit $75k within the day.
However, two scenarios could play out in the day if buying volumes drop. Bitcoin could either consolidate between $69,761 and $71k. It could break the $69,761 support and drop to around $67,640, a critical support level in the day.
Bitcoin Price Prediction – The Case For $75k Today
While the above scenarios could play out today, the odds are higher that bulls will remain in control today. That’s because halving FOMO is getting stronger, and with the technicals pointing to higher prices, money will likely keep flowing into Bitcoin as the halving draws nearer.
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