Bitcoin’s momentum continued over the weekend, and the asset managed to shut above $48,000, which truly grew to become its highest weekly closing level since December 2021.
Given the upcoming halving, which is simply a few months away and sometimes serves as a catalyst for additional value progress, the neighborhood speculates if BTC is not going to retrace anymore forward of the occasion.
BTC’s Highest Closing Value in 2 Years
Bitcoin endured an enormous crash in mid-January after the US Securities and Trade Fee greenlighted 11 spot ETFs. In what turned out to be a basic sell-the-news occasion, the cryptocurrency pumped to over $49,000 on the day the merchandise went stay for buying and selling and slumped by greater than ten grand within the subsequent two weeks.
After bottoming out at $38,500, the bulls began to propel the asset upward once more. This resulted in two consecutive weeks of positive aspects. Essentially the most spectacular was final week, which closed on Sunday night.
At this level, BTC had erased roughly all losses induced by the ETFs’ launch and closed at simply over $48,300 (on Bitstamp). That is the asset’s highest weekly closing value because the finish of the 2021 bull market in December.
This comes amid studies and speculations among the many crypto neighborhood that the asset’s value might go to new heights within the following weeks and months on account of potential inflows of as much as $130 billion this yr alone.
CryptoQuant’s CEO shared an identical prediction yesterday, setting a best-case value forecast for Bitcoin in 2024 at $112,000, relying on the overall quantity of inflows towards the spot ETFs within the States.
By no means Once more Beneath $40K?
The potential inflows into the spot Bitcoin ETFs are simply part of the bullish sentiment for 2024. The opposite notable occasion that’s scheduled to happen in about two months is the fourth BTC halving. Designed to slash the manufacturing of latest BTC in half, the halving takes place roughly each 4 years.
In idea, Bitcoin’s value ought to improve if the demand for the asset stays the identical or will increase because the quantity of newly produced BTC declines by half. Historical past exhibits that the cryptocurrency has certainly soared within the months after every of the earlier three halvings.
Whereas that’s no indication of future value performances, it units the temper for the upcoming halving and leads analysts, like PlanB and Lark Davis, to invest that there may not be one other retracement forward of the occasion.
PlanB went additional, suggesting that BTC’s value may not go beneath $40,000 once more, on condition that it at present trades above its total, 2-year, and 5-month realized costs.
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