Bitcoin On Steroids: Key Technical Factors Fueling The Rally To $70,000

The price of Bitcoin has been on a tear in recent weeks, surging over 30% and breaching the $50,000 mark. At the time of writing, Bitcoin was trading at $52,377, up 1.3% and 8.8% in the daily and weekly timeframes, data from Coingecko shows. Related Reading: Cardano Solid Stats: ADA Soars 14% On Rising TVL and Market Cap – Details This bullish momentum has ignited fresh optimism among investors, with many wondering if the world’s leading cryptocurrency is poised for another assault on its all-time high of $69,000. Analysts point to several key technical factors that could propel Bitcoin towards new heights in the coming months. Here are three of the most prominent: Halving Frenzy April 2024 marks the next Bitcoin halving, a highly anticipated event that occurs roughly every four years. During this event, the block reward for miners, currently 6.25 BTC, is slashed in half, effectively reducing the rate at which new Bitcoins enter circulation. This engineered scarcity has historically triggered significant price rallies, and analysts predict a similar outcome this time around. Source: IntoTheBlock IntoTheBlock, a quantitative crypto analysis firm, estimates a surge to a new all-time high just one month after the halving. They reason that miners, better prepared for the halving’s impact this time, will hold onto their rewards, limiting selling pressure and potentially boosting the price. Additionally, the halving reduces Bitcoin’s inflation rate from 1.7% to 0.85%, further enhancing its store-of-value appeal. We give Bitcoin 85% odds of hitting all-time high in the next 6 months. Curious what’s behind this prediction? read our latest newsletter👇https://t.co/acx2Fbi1Dw — IntoTheBlock (@intotheblock) February 17, 2024 The CEO of Sound Planning Group and an investment adviser representative, David Stryzewski, gave an explanation of his belief that the price of bitcoin is about to experience a significant upswing on the Schwab Network on Thursday. He clarified that the triggers for the rising price momentum for bitcoin are the impending halves of the cryptocurrency and the recently introduced spot exchange-traded funds (ETFs) that the U.S. Securities and Exchange Commission (SEC) approved last month. Macroeconomic Tailwinds The Federal Reserve’s dovish monetary policy stance, aimed at combating deflationary pressures, is another factor buoying Bitcoin’s prospects. The anticipation of interest rate cuts and increased liquidity injections into the financial system could benefit Bitcoin alongside other risk assets. Bitcoin market cap remains in the $1 trillion territory. Chart: TradingView.com ETF Explosion The long-awaited approval of Bitcoin Exchange-Traded Funds (ETFs) in late 2023 has opened the floodgates for institutional investors to enter the crypto market. These investment vehicles, which track the price of Bitcoin without requiring direct ownership, have already attracted billions of dollars in inflows. This surge in institutional participation is expected to continue in Q2 2024, potentially pushing the price of Bitcoin even higher. The Impact Of US Elections Furthermore, the upcoming US presidential election in November 2024 could provide an additional tailwind. If a Bitcoin-friendly candidate emerges victorious, it could lead to policies that accelerate cryptocurrency adoption and further legitimize Bitcoin as an asset class. Related Reading: UNI Jumps Over 12% – Here’s Why Investors Flock To This Token Not Without Risks The remarkable surge of Bitcoin as it tries to go a notch higher to the vaunted $70,000 level can be attributed to a convergence of key technical factors, propelling the cryptocurrency into uncharted territory. The relentless growth of the hash rate, improved scalability solutions, and ongoing developments in the blockchain ecosystem are collectively fueling this rally. Featured image from Freepik, chart from TradingView