Bitcoin price is currently in a breakout, leading the market in a renewed bullish rally ahead of the halving. In the last 24 hours, Bitcoin is up by 9%, and as of 11:04 GMT+3, it was trading at $56,220.
This comes after selling volumes dried up around the $50,000 to $51,000 where Bitcoin has been trading for over a week. The breakout comes amidst a sustained surge in institutional money into Bitcoin, which continues to get stronger daily through ETFs.
ETF Inflows Rise Sharply
The growing demand for Bitcoin amongst institutional players is evident in yesterday’s ETF inflows. Bitcoin ETF inflows into Bitcoin stood at $515 million on Feb 26. This was a significant jump from the previous two days, with inflows at $251 million and $232 million on the 22nd and 23rd, respectively. It indicates that institutional money is not just coming in but aggressively accumulating as much Bitcoin as possible ahead of the halving.
Yesterday the #Bitcoin ETFs saw net inflow of $515 million.
I’m in disbelief. pic.twitter.com/2Ui8Dk4lv3
— JJcycles (@JJcycles) February 27, 2024
Bitcoin Supply Shrinking
With such aggressive buying action by institutions and the ever-shrinking supply of Bitcoin, analysts now believe this breakout could mark the beginning of the 2024/25 crypto rally. Experts believe Bitcoin could be headed to $200k or more after the halving.
As FOMO builds up and the Bitcoin chart shows signs of a parabolic price, such expectations are within the realms of possibility. It also means that in the very short term, Bitcoin is about to smash its all-time highs. In the last 24 hours, Bitcoin has added $100 billion to its market cap and, at its current rate, could be headed to its all-time highs in a matter of hours or days.
A dry-up of selling volumes, coupled with aggressive Bitcoin buying by retail and institutional money, has put Bitcoin on a path to retesting its all-time highs within hours.
Bitcoin Breaks Out of A Ten-Day Consolidation, A Signal to A Bullish Rally
Bitcoin is in a bullish breakout after consolidating between 50,530 and $52,315 between Feb 15 and Feb 25.
After breaking out of the 10-day consolidation on the night of Feb 26, Bitcoin has sustained that momentum today. Buying volumes have shot up sharply, an indicator that more investors are coming in with the expectations of even higher prices. If this strong upside momentum continues, Bitcoin has no clear resistance, save for some psychological resistance at $60k. If Bitcoin can smash through $60k today, then it could easily retest its all-time highs within the day.
However, two scenarios could play out if short-term traders start taking profits. The first would be a short-term consolidation between $57,000 and the previous resistance of $52,315, now a key Bitcoin support level.
After a 30% price push for #Bitcoin in February, it’s a matter of time until Altcoins start their own rally 🚀
I am backing these 8 Projects to make the most when that happens.
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— Our Crypto Talk (@ourcryptotalk) February 27, 2024
If short sellers gain momentum and push Bitcoin through the $52,315 support level, then it could drop to $50,530. This is now a key Bitcoin support level in the day, one that has held even in the past week when BTC was largely trading sideways.
Bitcoin Price Prediction – Bitcoin’s Match To $69k Unstoppable
While another consolidation or a downside break is possible, the odds are that Bitcoin will continue going higher today. The odds are that it could be headed to its all-time high of $69k within the day.
One of the pointers to such a possibility is the technical charts. Bitcoin has broken out of its recent price range with high volumes. This breakout is interesting because, on the upper side, there are little to no resistance levels between its current price and its all-time high of $69k. With the supply low and the number of buyers rising, the odds are that buying pressure will push Bitcoin to $69k.
The fundamentals also support the current buildup in buying momentum as Bitcoin heads higher. One is the overall market expectations around the halving. Investors are excited that the halving could trigger a parabolic move for Bitcoin, pushing its prices above $200k. These expectations are not just speculative but founded on real economics. With the halving, the Bitcoin supply shrinks while demand continues to rise.
Now that institutional money is part of the play on the Bitcoin demand side, the odds of a match into prices unseen before for Bitcoin may have begun.
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