Bitcoin Price Prediction – ETF Adverts In Hong Kong Could Trigger Rally To $80k Soon

Bitcoin continues to demonstrate remarkable resilience, maintaining its position above the $66,000 mark, signaling robust underlying demand in the market. As of 08:29 UTC, Bitcoin was trading at $66,681, up by 0.81% in the day. 

This stability, amidst gradually rising buying volumes, suggests a potential rally on the horizon, fueled by various post-halving factors.

Grayscale Outflows Continue To Slow Down 

One significant development is the apparent slowdown in Grayscale’s Bitcoin sales. Since January, Grayscale has been offloading Bitcoin heavily, particularly after the approval of ETFs, as investors shifted towards lower-cost ETFs like those offered by BlackRock. 

Despite this ongoing trend, recent data indicates a deceleration in Grayscale’s Bitcoin sales, hinting at a potential depletion of their reserves. Concurrently, other ETFs, such as BlackRock, have experienced net positive inflows, further underlining the increasing demand for Bitcoin-related investment products.

Bitcoin ETFs Inflows On The Rise 

Bitcoin ETFs have experienced significant net inflows during recent trading sessions. Figures from Monday and Tuesday reveal substantial investments, with total net inflows reaching $31.6 million on Tuesday. 

Among the notable contributors were BlackRock with $37.9 million, Ark with $33.3 million, and Bitwise with $23.2 million. Conversely, Grayscale recorded net outflows amounting to $66.9 million. This rising demand and dwindling Grayscale outflows set the stage for a potential price rally soon.

Hong Kong Doing Mass Bitcoin ETF Advertising 

Moreover, the rising momentum around Bitcoin ETFs in Hong Kong adds another layer of bullish sentiment to the market. Advertisements promoting Bitcoin ETFs are circulating in Hong Kong, indicating growing interest and potential demand. 

This is Huge for #Bitcoin pic.twitter.com/xsTycEbIlV

— Crypto Daily Trade Signals (@cryptodailyTS) April 24, 2024

Short Positions Offer Liquidity For Upside Momentum

Another factor that could see Bitcoin head higher is the high number of short positions between $68,000 and $74,000. Should Bitcoin surpass $68,400, approximately $2 billion of short positions would be liquidated. 

Short Liquidations: $8b shorts will be liquidated with a move to $74k Bitcoin.

$2b will be liquidated with a quick move to $68400 👀 pic.twitter.com/DIAYwQ6yY1

— MartyParty (@martypartymusic) April 23, 2024

Pushing higher to $74,000 could trigger the liquidation of up to $8 billion in shorts. This scenario and increasing demand create a perfect storm for a short squeeze, potentially propelling Bitcoin to at least $80,000.

New Whales Now Control Bitcoin – Have the Incentive To Hold

Adding to the optimism is the behavior of whales, large holders of Bitcoin, who have a vested interest in maximizing returns. Recent data indicates a transfer of Bitcoin ownership from old holders to new whales, as evidenced by Bitcoin’s Average Dormancy reaching a 13-year peak. This trend suggests that current Bitcoin holders are inclined to hold onto their assets, further tightening the supply and potentially driving prices higher.

A confluence of factors, including dwindling Grayscale outflows, surging demand from various sectors, the launch of Bitcoin ETFs in Hong Kong, and the potential for a short squeeze, paints a bullish picture for Bitcoin’s short-term prospects. 

Bitcoin Buying Volumes On The Rise, Eyes Key Resistance Levels

Bitcoin’s trading volumes have been on the rise, albeit relatively slowly. This uptick in trading activity has coincided with seven consecutive days of price gains following a dip to $60,000 lows a week ago.

As buying volumes continue to climb, attention turns to the crucial resistance level of $71,663 in the short term. Bulls pushing Bitcoin beyond this resistance could pave the way for a rally towards $80,000. However, the significance of this resistance cannot be understated, as failure to breach it might result in further consolidation between the $71,663 resistance and the $60,000 support level.

On the other hand, if bearish pressure intensifies and Bitcoin breaches the $60,000 support level, it could trigger a downturn toward the $57,000 to $55,000. Such a move would signal a shift in market sentiment and could trigger more short-term correction.

Which Way For Bitcoin?

While Bitcoin could continue consolidating or turn bullish in the short term, the odds are high that bulls will remain in control. The momentum is bullish overall; it’s only that volumes are low. With the rising inflows from US ETFs and the advertisements for the Hong Kong ETFs, volumes will likely increase in the short term. This presents the case for Bitcoin to test and push through the $71,663 resistance in the short term. 

Read More: Bitcoin Price Prediction & Forecasts