Bitcoin has set a new all-time high as the worst correction in 2024 ends, experts say
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After a 42-day correction of 25.2%, Bitcoin rose 12% to $63,585. Experts predict a new Bitcoin all-time high in 2024, possibly before the end of summer.
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Bitcoin (BTC) has gained momentum over the last few days of the week, rising from the $56,000 price zone to $63,585.22, a gain of nearly 12% during this period. Along the way, BTC regained important price levels and left the worst part of the correction, according to industry experts. This opens a new path to a possible all-time high in 2024, possibly before this winter is over.
According to a trader who identified himself as Rect Capital on XPost, Bitcoin has completed a 42-day correction of 25.2%. In addition, Diamond Swap founder Hank White shared with Crypto Briefing that payments to Mt.Gox creditors and the end of BTC liquidity by the German government could end the current worst correction.
“These events have created significant downward pressure, but with most of us behind us, Bitcoin has the potential to trade in a higher range, assuming no new macroeconomic disruptions occur,” White added.
James Davis, founder and CPO of CVEX, highlighted that Bitcoin started to rebound after the German government started selling BTC holdings. While the main factor behind the weekend's rally was the Trump event, Davis noted that the upward movement began before then.
“The rally started earlier and was more pronounced during Asian trading hours. In my view, this indicates a reversal back to fair value, as the market has temporarily sold off due to insufficient liquidity to absorb the temporary selling pressure.
Mehdi Lebbar, co-founder and president of Exponential.fi, believes that the market looks very bearish on Bitcoin after the German government depleted its Bitcoin stash. Furthermore, Gox noted that since the payment of creditors occurred 10 days ago, the market may assume that those who need to take profits have already done so.
Are you stuck until the first rate drops?
Although Bitcoin has achieved significant price levels, the market expects the largest crypto by market cap to still trade in the previous range between $65,000 and $71,000 in the next few weeks. The first rate hike from the Fed, set to happen in September, could break this range.
Hank White from Diamond Swap shares this market sentiment, saying that this could act as a catalyst for Bitcoin to reach its previous all-time high.
“Low interest rates generally appeal to fiat currencies and more traditional investments, thereby increasing the attractiveness of Bitcoin and other cryptocurrencies. However, if the rate cuts don't materialize, continued volatility and consolidation could still occur as the market adjusts expectations and looks for new drivers to move upward, White added.
Although he recognizes the importance of price reduction for the current state of the crypto market, Mehdi Lebbar, from Exponential.fi, believes that BTC currently has a lot of idiosyncratic assumptions that make the Fed rate not the most important event that affects the price. In the next few months.
“For example, the introduction of an ETH ETF could influence the price of Bitcoin by reviving the general interest in crypto. Furthermore, the election of the US and a more crypto-friendly administration could have a positive impact on both Bitcoin and the broader crypto market. After all, Bitcoin has increased 6x in the previous cycle (May 2020 – October 2021) and 20x in the cycle before that (July 2016 – December 2017),” he explained.
It could be a new all-time high this summer.
Bitfinex analysts shared with Crypto Briefing that a new all-time high could be set for Bitcoin before the end of the summer. However, this may not be the case with major institutional adoption or favorable regulatory developments such as the successful position of the Ethereum ETF and the Mt. Gox would require a significant bullish incentive, such as full pricing on the offering.
He added: “Bitcoin's current close to $63,000 is a positive indicator, but a break above $73,000 by the end of the summer will require a sustained breakout and positive market sentiment.”
However, even if Bitcoin is unlikely to reach new all-time highs this summer, the analysts added that BTC could reach new highs by at least Q4 2024, consistent with post-halving cycles.
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