Bitcoin has rebounded strongly in the last 24 hours after a correction that started towards the end of last week. As of 11:07 GMT+3, Bitcoin was up 7.04% to trade at $67,195.07.
This rebound follows the FOMC’s decision to keep interest rates for the 5th time. This has increased speculation in the market that rates could start going down from June. The move has seen institutional players holding back before the FOMC meeting getting back into Bitcoin. As institutional flows begin to rise now that the interest rates environment is likely to improve for the remainder of the year, Bitcoin could be headed for much higher prices going forward, with prices above $100k, a realistic short-term target.
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Inflows Into Bitcoin Approaching Standard Chartered Projections
The growing institutional inflows into Bitcoin, especially from the BlackRock ETF, now exceed $10 billion and are getting closer to a projection that Standard Chartered Bank made in January. Standard Chartered Bank projected that inflows into Bitcoin in 2024 would be in the $50 billion to $100 billion range within months of the ETF, and they are getting there, and this means potentially much higher prices for Bitcoin from where it is today.
In the two months since #BTC ETF Launch, every model of expected flows has been destroyed.
With one exception.
Standard Chartered predicted 50-100 BILLION inflows into #Bitcoin ETFs
They’re right on track. pic.twitter.com/Uswwf5KDMM
— Thomas | heyapollo.com (@thomas_fahrer) March 21, 2024
The Halving Is Drawing Closer
The Bitcoin halving is also getting closer and is only three weeks away. Historically, Bitcoin has retraced a few weeks before the halving, and the market is likely interpreting the dip that has lasted for the past week as the 2024 dip. With the FOMC decision supporting markets across the board, the market could interpret the current rebound as ending the 2024 pre-halving correction.
We are very close to seeing fireworks.
We could see new highs by the end of the week. Tick tock! #bitcoin https://t.co/CqgIue1DMm pic.twitter.com/EhizaMfkBv
— Bitcoin Munger (@bitcoinmunger) March 20, 2024
This may explain why Bitcoin buying volumes are currently rising across the board. It indicates that markets anticipate a rally, pushing prices above $200k post-halving. Some analysts project that 2024 could be the year Bitcoin hits the $1 million mark.
Overall, the FOMC decision that the markets have interpreted as a precursor to a series of rate cuts later in the year could see Bitcoin rocket to new highs both pre-halving and after the halving.
Bitcoin On A Rebound, A Signal To A Bullish Continuation
After a correction to $61,067, Bitcoin has made a rebound, erasing most of the losses to trade at $67,500 at the time of writing.
If Bitcoin sustains the current upside momentum, the key level to watch will be Bitcoin’s most recent high of $73,441. If Bitcoin bulls can push it through the $73,441 resistance, then prices above $80k could be hit within the day, and $100k could be within reach in the week.
On the other hand, if bulls fail to push Bitcoin through the $73,441 resistance, then two scenarios could play out in the day. The first one is a consolidation between $73,441 and $61,067. This could then be followed by another upside breakout after the halving.
However, if short sellers take control in the day, then $61,067 support would come into focus. If short sellers push the price through the $61,067 support, then prices around $55k could be tested within the week.
Bitcoin Price Prediction – Why The Case For $80K Is Most Plausible
While any of the three scenarios above could play out today or within the remainder of the week, the case for Bitcoin pushing to a high of $80k or more holds more promise. Several factors support such a price rally.
The biggest one is the interest rate environment in the US. The FED has hinted to the markets that lower rates are coming, which means investors will increasingly be looking to buy risky assets. This means the capital allocation by individuals and institutions into Bitcoin could go up substantially. Bitcoin could be headed for a new high way past $80k quickly. Inflows into Bitcoin are already on the rise, a positive signal of what’s to come.
There is also the fact that Bitcoin is getting closer to halving. Investors counting on this event to trigger the next Bitcoin rally could be taking positions now. This further makes the case for $80k this week more plausible as momentum builds up.
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