Disclosure
Cryptocurrency trading is speculative and your capital is at risk when you trade. We may earn affiliate commissions from some of the products on this page - at no extra cost to you.
Bitcoin Price Prediction – $70k In Sight As BTC Demand Outstrips Supply

Bitcoin has surged in the last 24 hours, reclaiming lost ground and rallying from lows of $61,600 to $65,000. As of 09:45 UTC, Bitcoin was trading at $64,846 and rising. 

This bullish resurgence has been accompanied by a notable uptick in trading volumes, surging 18% to $49.64 billion. The sudden spike in activity comes amid mounting anticipation surrounding the Bitcoin halving, now less than 16 hours away.

Bitcoin Halving Impact On BTC Inflation 

The renewed positive sentiment surrounding Bitcoin halving 2024 is grounded in solid fundamentals. The halving will reduce Bitcoin inflation to a mere 0.84% by slashing block rewards from 6.25 to 3.125 Bitcoin. This reduction in the supply of newly minted Bitcoin comes when institutional demand for Bitcoin is rising.

More ETFs Boost Sentiment And Demand

The recent approval of a Bitcoin ETF in Hong Kong has further fueled optimism, opening the door for Chinese investment in Bitcoin through regulated channels. Combined with the ongoing influx of institutional capital driven by US ETFs, this development underscores the growing mainstream acceptance of Bitcoin as a legitimate asset class. It also significantly boosts sentiment ahead of the Bitcoin halving. 

Less Incentive For Institutions To Sell Halving News 

While some analysts, notably the big banks, have suggested that the halving impact may have already been priced in during the recent surge to $73,000, empirical evidence suggests otherwise. Despite the substantial gains experienced by long-standing Bitcoin whales, newer institutional players, particularly those accessing Bitcoin through ETFs, have seen more modest returns of just 1.6% in unreleased profits. This suggests that the potential impact on their returns is relatively minor, thus mitigating the likelihood of mass sell-offs.

History Is On The Side Of Halving-Driven Rally

Historical precedent also points to the potential for significant post-halving rallies, with past cycles witnessing price surges of up to 3X. Given the current scarcity of Bitcoin and the prevailing market dynamics (institutional players), Bitcoin could quickly rally by over 5X in the aftermath of this halving cycle.

Technical Indicators Paint A Bullish Picture 

Technical indicators further bolster the bullish outlook for Bitcoin, with the monthly charts revealing a decisive bounce off the $61,643 support level, which previously served as a formidable multi-year resistance. This signals robust underlying demand for Bitcoin and augurs well for continuing the bull run that commenced in 2023.

Adding to the bullish momentum is the presence of approximately $3 billion in short positions clustered around the $71,000 mark. As bullish pressure intensifies, these shorts represent potential liquidity to fuel a rapid ascent to $80,000 or beyond, propelled by a block-halving-triggered short squeeze.

Binance Re-Entry In India Comes At An Opportune Time

Moreover, the reentry of Binance, the world’s largest cryptocurrency exchange, into key markets such as India following regulatory hurdles promises to inject a fresh influx of retail capital into the market. With the halving mere hours away, this surge in retail activity could catalyze an explosive rally in Bitcoin.

Overall, optimism is on the rise around Bitcoin as the countdown to the halving ticks down. With bullish momentum building and key fundamentals aligning, all eyes are on Bitcoin as it stands on the brink of a potentially historic moment. 

Bitcoin Bounces Off Key Support, Solidifying Odds Of a Bull Rally

Bitcoin’s monthly chart reveals a sustained bullish trajectory since 2021, culminating in a breakthrough of the crucial resistance turned support level at $61,463.45 last month. Recent geopolitical tensions have seen Bitcoin test this support several times this week, but anticipation surrounding the halving has prompted a bounce off this level with notable volumes. 

Should bullish momentum persist, Bitcoin’s next significant hurdle lies at the recent high of $73,600. Surpassing this level could pave the way for a surge past $80,000 in the coming days. Conversely, a $61,463.45 monthly support breach could signal a correction towards the $57,000/$58,000 range. 

Bitcoin Price Prediction – Why Bulls Are Likely To Carry The Day 

With all the hype around the Bitcoin halving, the odds are low that bears could retake control at this point. This means that even if there is a retest of the $61,643.45 support, the odds of a breach to prices below $60k are low. History has shown that Bitcoin tends to do well after the halving. Besides, with more avenues for retail and institutional money to get into Bitcoin than ever, the odds of a bullish rally post-halving are higher than they were in past-halving cycles.