Bitcoin’s upcoming halving event, the approval of spot Bitcoin ETFs, and a bullish technical setup indicate that BTC is on track to reach a new all-time high. In 2024, after a bullish year in 2023, the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs, leading to a surge in the prices of Bitcoin, Ether, Solana, and other cryptocurrencies. Bitcoin’s market capitalization surpassed $1 trillion on Feb. 16, reflecting a 118% increase over the past 12 months. The price of Bitcoin also increased by 110% during this period.
Many traders believe that BTC’s price action is influenced by the upcoming halving event, which is less than 70 days away. Historical data suggests that Bitcoin’s price tends to follow a cyclical pattern and that bull cycles are often triggered by events like the halving, which reduces the rate of BTC issuance. The next halving event is scheduled for mid-April 2024, and data shows that bull runs can start months before the event and continue until BTC reaches a new all-time high.
Crypto trader and analyst Rekt Capital explains the “5 Phases of The Bitcoin Halving,” with the “Parabolic Uptrend” being the final phase where BTC price grows exponentially and reaches new all-time highs. Independent investor Lady of Crypto projects that Bitcoin’s parabolic uptrend will take 7 to 8 months after the halving, with BTC breaking all-time highs in November 2024. Investment manager Timothy Peterson agrees with this sentiment.
Capital inflows into spot Bitcoin ETFs continue to increase. Data shows that $4.5 billion have flowed into Bitcoin ETFs since they began trading on Jan. 11. While outflows from GBTC initially exceeded inflows into the new ETFs, this situation has changed, with BlackRock’s IBIT recording one of the most successful ETF launches in history, surpassing 100,000 BTC assets under management on Feb. 13. This week, Bitcoin ETFs recorded an average of $450 million in daily inflows, bringing the total assets under management to 258,770 BTC.
Bitcoin’s technical setup also indicates its bullish potential. The price chart has formed a rounded bottom pattern on the weekly chart, with the neckline at $69,220, which coincides with the all-time highs reached in November 2021. A weekly candlestick close above this level would confirm a bullish breakout, and the relative strength indicator (RSI) for Bitcoin has moved into the overbought zone, further supporting the dominance of bulls in the market. The Exponential Moving Averages (EMAs) have also produced a bullish cross on the weekly chart. Trader Aksel Kibar predicts a rally to $65,000 and beyond if the price breaks above the ascending parallel channel on the weekly chart.
Note: This article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.