3 Key Bitcoin Price Indicators Point to New BTC All-Time Highs in 2024
Bitcoin (BTC)'s upcoming supply halving and historic price action, increasing inflows into the space, Bitcoin exchange-traded funds (ETFs), and a breakout technical setup suggest that BTC is on its way to a new all-time high.
In the year After a fairly bullish year in 2023, 2024, the approval of spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC) has seen an increase in the value of Bitcoin, Ether (ETH), Solana (SOL) and other cryptocurrencies.
As Bitcoin rose above $50,000, its market capitalization surpassed $1 trillion, rising to $1.02 trillion on February 16, a 118% increase over the past 12 months.
The growth was accompanied by a 110% jump in the price of Bitcoin over the same period.
The halving and historical data restores Bitcoin's potential.
Many traders believe that the key to BTC price action is the upcoming halving event, which is less than 70 days away.
Bitcoin price action analysts tend to follow certain cyclical patterns by drawing parallels between historical patterns and the current price action. This indicates the possibility of a bull cycle similar to those seen in the past.
Likewise, BTC's historical bull runs seem to follow four-year cycles, often triggered by events like the Bitcoin halving, which reduces the supply of BTC.
The next halving event is scheduled to take place in mid-April 2024, when the BTC rewards for miners per block will decrease from 6.25 BTC to 3.125 BTC.
The data shows that a halving is positive for BTC price, and bull runs can start months before the event – it is being witnessed – and continue until BTC price reaches a new all-time high.
Crypto trader and analyst Rect Capital explains the “5 Stages of Bitcoin Breakthrough” with “Parabolic Appreciation” in the last phase of the BTC price rally.
A similar opinion is expressed by an independent crypto investor who projects that Bitcoin's parabolic growth will take 7 to 8 months after BTC breaks all-time highs in November 2024.
All-time Highs In the last two cycles, Bitcoin broke all-time highs in 7 and then halved 8 months later.
The ETF has not yet raised BTC to 100k as many thought. I think it will be 7-8 months like the last two times, so, November 2024!
6/12 pic.twitter.com/9Lo3E1Ur3N
— Lady of Crypto (@LadyofCrypto1) January 17, 2024
Timothy Peterson, investment manager at Can Island Alternative Advisors, agrees;
“Bitcoin to hit $100K in August.”
Yesterday #Bitcoin hit 100% (almost literally) in 180 days. It has happened 41 times since 2015. Bitcoin is up 78% of the time. The average return for the next 180 days was also 100%. As of today and based on historical data, there is a 50% chance that Bitcoin will… pic.twitter.com/KvXHYWdIUY
— Timothy Peterson, CFA CAIA (@nsquaredcrypto) February 15, 2024
While some traders believe the 2024 halving will be more important than ever, others believe this time may be different.
Capital will continue to flow into Bitcoin ETFs
Capital flows continue to increase into the spot Bitcoin ETFs. Data from Farside Investors shows that a total of $4.5 billion has flowed into Bitcoin ETFs since they began trading on January 11.
While outflows from GBTC exceeded total inflows into the new ETFs, this situation has changed, with BlackRock IBIT becoming one of the most successful ETF startups in history, surpassing 100,000 BTC in assets under management (AuM) on February 13.
Bitcoin ETF demand accelerated this week, averaging $450 million a day. In the year February 16 saw the Everywhere Bitcoin ETF AuM come in at 258,770 BTC – worth $13.4 billion at current prices.
Just in: The 9 new Bitcoin ETFs hold a total of $258,770BTC, buying an average of ~10,000 #Bitcoin per day.
This is about 11x the daily withdrawal from Block Reward.
Chart: Daily Bitcoin Volume of GBTC Expenditures Net by ETFs. pic.twitter.com/65i0CztzjE
— Bitcoin Archive (@BTC_Archive) February 16, 2024
In comments to Cointelegraph, Tristan Dickinson, head of marketing and communications at the dYdX Foundation, said that “the rapid adoption of Bitcoin ETFs” contributed to pushing BTC above $50,000.
Dickinson added,
“This adoption shows the maturity of the sector, with BTC strengthening an asset class similar to gold. With the halving in April, it is increasingly likely that we will start to see signs of a silver market.”
The technical setup of Bitcoin reflects the bullish potential of BTC
The Bitcoin price chart has formed a round bottom chart pattern on the weekly chart. Buyers have set their target on the neck of the management chart pattern at $69,220, possibly coinciding with the all-time highs reached in November 2021.
A weekly candlestick above this level would confirm a major breakout from the rounded bottom formation that would lead BTC to a price breakthrough.
Bitcoin's Relative Strength Indicator (RSI) has moved into the overbought zone, edging towards the 80-point mark and reinforcing the bulls' dominance over the market.
Explanatory Moving Averages (EMAs) also produced a bullish cross on the weekly chart. This happened in early January when the 100-week EMA crossed above the 200-week EMA.
Trader Axel Kibar sees BTC trading in an upward parallel channel with support on the weekly chart near $65,000 and a break above the channel.
The upper border of a trend channel. $BTCUSD will break that and rally to 65K. pic.twitter.com/mliG09Sevt
— Axel Kibar, CMT (@TechCharts) February 15, 2024
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
