Bitcoin’s fourth halving event, which took place on April 20, has the potential to trigger the most bullish Bitcoin cycle yet, thanks to historical chart patterns and the emergence of spot Bitcoin exchange-traded funds (ETFs).
In a historic moment for the crypto industry, Bitcoin reached a new all-time high of over $73,600 on March 13, just before the halving event. Previous halving events have seen Bitcoin price surge to new highs within 518 to 546 days.
This pre-halving all-time high, combined with institutional inflows from the ten United States spot Bitcoin ETFs, has created an extremely bullish scenario for Bitcoin, according to Sukhveer Sanghera, founder and CEO of Earth Wallet.
Bitcoin’s price has experienced a 5.6% drop on the weekly chart, currently trading above $63,600 as of 9:58 a.m. UTC. However, data from TradingView shows that Bitcoin has rallied over 50% since the beginning of 2024, despite only a 2.85% increase in the past month.
While Bitcoin’s long-term price action is expected to be positive, it is worth noting that halving events are typically preceded by short-term corrections. If Bitcoin manages to break the $65,000 resistance level, it could mark the end of the current drawdown, according to Temujin Louie, CEO of Wanchain.
The recent decline in Bitcoin’s price can be attributed to slowing accumulation in the ten U.S. spot Bitcoin ETFs, with net inflows turning negative during the halving week. According to Dune, these ETFs saw $398 million worth of net outflows during that week, compared to over $199 million worth of net inflows the previous week.
Despite this temporary setback, the ten Bitcoin ETFs have accumulated over 835,000 BTC, equivalent to $53.5 billion, which represents 4.24% of the total Bitcoin supply.
The overall narrative surrounding Bitcoin’s price action remains positive, despite the decline in ETF inflows. This indicates that new investors are still interested in gaining exposure to BTC, according to Jonas Simanavicius, co-founder and CTO at Syntropy. Simanavicius also highlighted the growing perception of Bitcoin as a hedge against political tensions, which could further strengthen its status as a safe haven asset.
In related news, Bybit predicts that Bitcoin supply on exchanges will run out in 9 months.