The 2024 Bitcoin Halving is a “very bullish” setup for the BTC price.
The fourth-ever Bitcoin halving that occurred on April 20 could create the “most bullish” Bitcoin cycle based on historical chart patterns coupled with the presence of spot Bitcoin exchange-traded funds (ETFs).
For the first time in crypto history, the price of Bitcoin (BTC) hit a new all-time high of over $73,600 on March 13 before halving. Historically, Bitcoin prices have risen to new highs between 518 and 546 days after the last half of events.
The first ever halving, combined with the institutional earnings of ten US bitcoin ETFs, creates a “pretty much better setup” for bitcoin, according to Sukhveer Sanghera, founder and CEO of Earth Wallet. He told Cointelegraph.
“Almost all BTC mined, early investors via ETFs, inflationary demand and increased consumption – all fundamental aspects of Bitcoin's price proposition are stronger than ever.
To trade above $63,600 as of 9:58 am UTC, Bitcoin price is down 5.6% on the weekly chart. The world's first cryptocurrency rose 2.85 percent last month, but is up more than 50 percent since the start of 2024, according to TradingView data.
While Bitcoin price action is expected to be higher in the long term, the halvings are historically preceded by short-term corrections.
According to Wanchain CEO Temujin Lui, if the price can rise above the $65,000 resistance, the price of bitcoin could see the end of the current decline. He told Cointelegraph.
“Historically, it has followed bitcoin halves. Expect to see continued consolidation until support near $58,000. If BTC breaks recent highs, look for a quick rally to $80,000, $90,000 or $100,000 as investors favor round numbers.”
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Bitcoin ETF earnings will see a temporary dip before halving.
Last month's sluggish price action was largely due to a slowdown in bitcoin holdings in the top ten U.S.-based Bitcoin ETFs, as net returns turned negative in a halving week.
US spot Bitcoin ETFs saw a negative net inflow of $398 million in the first half of the week, down from a net positive inflow of $199 million last week, Dunn said.
Despite the temporary downturn, the ten Bitcoin ETFs have collectively raised $53.5 billion worth more than 835,000 BTC, which is 4.24% of the current Bitcoin supply.
According to Jonas Simanavicius, co-founder and CTO at Syntropy, the narrative around Bitcoin price action remains positive, despite the temporary decline in ETF inflows, which signals new investors preparing to gain exposure to BTC.
“Early adopters from large capital institutions have entered the market, and the next wave of institutions is taking time to prepare for their income. While the big banks are predicting some downward movement in BTC's post-halving activity, I see strength in BTC as new capital flows can be generated and hedges against inflation.” Because of being.
Simanavicius added that bitcoin is seen as a “hedge against political tensions” amid increasingly escalating international conflicts, which could strengthen its status as a safe-haven asset.
Related: Bitcoin supply will run out in 9 months – Bybit
