Bitcoin Price Prediction As Halving Draws Closer
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Bitcoin is currently rangebound following the recent bull rejection at $72k. As of 08:47 UTC, Bitcoin was trading at $69,079, down by 1.79%. Trading volumes were down by 13% to $33.09 billion.
Bitcoin has experienced a significant setback after being rejected at $72,600 on April 8th and has continued to trend downwards. The pivotal point of $69,761 was broken today, plummeting Bitcoin even further into bearish territory. It is currently in a state of consolidation between $69,761 and $67,640.
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Repeating A Pattern Consistent With Past Halving Cycles
While these fluctuations concern some investors, many analysts have maintained their optimism, pointing out that similar trends have occurred during previous halving cycles. These periods often come with inconsistent trade patterns, and these last nine days to the halving could see Bitcoin continue to trade in a narrow range. A parabolic price move could follow this consolidation as halving reads mining rewards.
OTC Bitcoin Is Running Low As Investors HODL
In addition to this optimistic stance on historical trends, positive fundamental indicators are present when considering Bitcoin’s future price trajectory. For example, over-the-counter (OTC) desks are running low on supply, which suggests that institutional demand is higher than ever before.
#BTC Correction before Halving is normal, Focus on the bigger picture👇
🔸OTC desks are running out of #Bitcoin, and Michael Saylor and Tether are still accumulating.
🔸London Stock Exchange is listing ETNs, and the Fed plans 3 rate cuts this year.
🔸Grayscale outflows are…
— Sumit Kapoor | Token2049🇦🇪 (@moneygurusumit) April 10, 2024
High-profile investors like Michael Saylor are doing their part by bolstering public confidence in Bitcoin as a valuable store of value.
Grayscale Outflows Are Decreasing
Market analysis shows that institutional demand for Bitcoin is getting stronger. A key indicator is that Grayscale continues to see fewer outflows, which is a big deal considering that Grayscale outflows have been a significant factor in holding back Bitcoin in recent months.
COMMENT: Grayscale’s GBTC outflows seem to be cooling down lately… https://t.co/z7a5hIJr2p
— BSCN (@BSCNews) April 4, 2024
Another bullish indicator is that the amount of Bitcoin held on the Coinbase exchange has hit its lowest amount in 6 years. This indicates that many more investors are choosing cold storage, which means they don’t intend to sell soon. All this is happening at a time when there are growing daily inflows of Bitcoin into ETFs, hitting as high as $300 million on some days.
The Chinese Bitcoin ETFs Angle And Other Upcoming Demand Drivers
Market experts are banking on several catalysts that could send Bitcoin into a parabolic price rally right before or after the halving. The Financial Accounting Standards Board (FASB) is expected to roll out formal accounting for cryptocurrencies by the end of this year, which will legitimize Bitcoin as a mainstream asset in many ways. Hong Kong authorities are working towards approving spot ETFs, which would be another huge step forward in mainstream adoption in the Chinese market.
The London Stock Exchange announced plans to launch a market for Bitcoin and Ether exchange-traded notes (ETNs) starting May 28, with applications opening on April 8. This new market, pending Financial Conduct Authority (FCA) approval. pic.twitter.com/44xIAE0D02
— M20 (@m20blockchain) April 6, 2024
Others include the London Stock Exchange’s upcoming listing of Bitcoin Exchange-Traded Notes (ETNs) and speculation that the Federal Reserve could start cutting interest rates this year. The upcoming CPI data that will be out today could be a key indicator of when this will happen.
Bitcoin is currently experiencing choppy trading, which has happened in past halving cycles. However, Bitcoin demand is on the rise, and Bitcoin could push to unprecedented new highs after the halving.
Bitcoin Entering Another Pre-Halving Consolidation As Volumes Drop
After a bullish breakout was rejected at $72k on Monday, bears attempted to take control but failed. What has followed is the current consolidation, with Bitcoin now trading between the $69,761 resistance and $$67,640 support.
If bulls regain momentum and push Bitcoin through the $69,761 resistance, then a retest of $73k high and a possible break in the day could follow. In such a case, Bitcoin could hit $80k before the halving.
However, if volumes remain low, as they are now, Bitcoin could trade in the $69,761 and $67,640 range for the rest of the day.
On the other hand, if bears take control and drive Bitcoin through the $67,640 support, a flash crash to around $60k could be in the cards before the halving.
Bitcoin Price Prediction – Why Bitcoin Could Remain Rangebound Today
While the three scenarios above could play out today, Bitcoin will likely remain rangebound. That’s because trading volumes have declined for the better part of the morning. This means unless big news comes up within the day, Bitcoin could continue its directionless trading today and continue that way until the halving happens and restarts Bitcoin trading activity. One big news that could trigger a Bitcoin breakout today is US CPI data. Bitcoin could be headed to $80 or more before halving if it meets expectations.
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