Bitcoin’s price surged by more than 10% on February 28, reaching a new high for 2024 at $64,000. The significant increase in price this month is largely attributed to investors’ anticipation of the upcoming supply halving event, which typically leads to a strong upward movement in price.
In addition, the steady inflow of funds into recently launched spot Bitcoin exchange-traded funds (ETFs) is believed to be playing a crucial role in Bitcoin’s price action.
Some technical analysts have cautioned that the market structure of Bitcoin and the high funding rates across the market indicate heavy use of leverage, which could eventually result in a correction triggered by liquidation.
However, options analysts are dismissing claims that the price increase is excessive, stating that they believe the current rally in Bitcoin’s price has strong potential for further growth.
Analyst Chris Newhouse supported this view by citing data from key Bitcoin options markets, open interest, and funding rates.
Independent market analyst Nunya Bizniz also expressed a bullish perspective on Bitcoin’s price, pointing out that the relative strength index (RSI) for Bitcoin was above 70. He noted that in previous market cycles, Bitcoin’s price remained in an upward trend for at least 335 days after the RSI crossed the 70 threshold.
After reaching $64,000, Bitcoin’s price experienced a flash crash to $58,700. This was likely caused by a sell wall at that level and the clearing out of leveraged long positions. However, BTC had already recovered almost 5% of the decline at the time of writing.
Bitcoin is currently less than 13% away from its all-time high, and many retail and institutional investors expect it to surpass the record level of $68,900 before the supply halving event, which is scheduled to occur in approximately 52 days.
It is important to note that this article does not provide investment advice or recommendations. All investment and trading decisions involve risk, and readers should conduct their own research before making any decisions.