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

The cryptocurrency market has sprung to life in the wake of the much-anticipated Bitcoin halving. Many altcoins are experiencing double-digit gains, and Bitcoin is increasing in buying volume.  As of 09:51 UTC, Bitcoin was trading at $64,991, marking a 2.43% increase in the last 24 hours, fueling speculation that the long-awaited Bitcoin halving bull run may have commenced.

Block Halving Creates Supply Shock 

There are fundamental reasons for the rising optimism in the market. The recent Bitcoin halving has triggered a significant reduction in block rewards to 3.125 Bitcoin, thereby creating a supply shock with a 50% reduction in mining rewards. This has come when demand for Bitcoin is on the rise. 

Institutional Demand On The Rise

For context, this supply shock aligns with the concurrent surge in institutional interest, with Bitcoin ETFs emerging as critical catalysts for heightened demand. Notably, the BlackRock ETF now boasts a holding of over 202,000 Bitcoin, underscoring institutional confidence in the digital asset. Moreover, the recent approval of a Bitcoin ETF in Hong Kong is poised to stoke investor appetite further, suggesting a bullish stance among institutional players who typically adopt a long-term investment perspective.

In tandem with the fundamental factors, technical indicators paint an equally optimistic outlook for Bitcoin. The emergence of bullish signals mere hours after the halving indicates a potential influx of capital as investors anticipate a parabolic price move. This sentiment is bolstered by rising buying volumes, setting the stage for a short-squeeze scenario. 

Short Squeeze Setup Around $71,000

Still, on bullish technical indicators, approximately $2.8 billion in shorts are placed around the $71,000 price level. This presents the possibility of a rapid price surge should these positions be forced to cover. Analysts speculate that such a short squeeze could propel Bitcoin to the $80,000 mark as markets reopen in the new week, further reinforcing bullish sentiment.

The convergence of favorable fundamentals and technical signals has reignited optimism among cryptocurrency enthusiasts, with many foreseeing the onset of a sustained upward momentum for Bitcoin. The halving-induced reduction in supply and escalating institutional demand have laid the groundwork for a potential Bitcoin price rally. 

Bitcoin Continues Gaining Upside Momentum Post-Halving But Still RangeBound

Following a period of indecisive trading during the block halving, Bitcoin is demonstrating signs of upward momentum. With yesterday’s close higher and today’s opening above the previous day’s close of $65,109, the market sentiment appears cautiously optimistic. However, despite the recent uptick, Bitcoin is still rangebound, oscillating between the weekly support level of $61,095 and the critical resistance level of $71,663.

Should bullish momentum persist, attention will gravitate towards breaching the $71,663 resistance. A successful breach of $71,663 resistance could pave the way for Bitcoin to test highs of $80,000 in the ensuing hours or days. It could signal the beginning of a bullish super cycle, as has been the case in past halving periods. 

Conversely, a decline in buying volumes could trigger two potential scenarios today. Firstly, the market may continue to navigate within the established range, with price action oscillating between $61,095 and $71,663. However, should bears seize control and breach the $61,095 support level, Bitcoin may encounter downward pressure, potentially leading to a descent below the $60,000 mark in the coming days.

As traders monitor price movements, attention remains focused on the interplay between buying and selling pressures within the $61,095 – $71,663 price levels. While upside momentum presents the possibility of a bullish breakout, downside risks underscore the importance of vigilance in navigating the current market landscape. 

Why Bitcoin Has a Higher Chance For A Bullish Breakout

Markets are inherently unpredictable, meaning any of the scenarios above could play out today or in the coming days. However, the case for a bullish breakout is quite strong. Bitcoin sends the right signals, closing higher with each new day’s post-halving. It indicates that FOMO has yet to kick in, but market participants are bullish on Bitcoin. To add to that is the fact that there are billions of dollars in short positions, around $71,000. This presents a perfect setup for a short squeeze, providing the liquidity necessary to quickly push Bitcoin to new highs.