Can Bitcoin Price Hit $70,000 by the Bitcoin Halving 2024?

Key Takeaways:

• Bitcoin price demonstrates remarkable resilience, returning from a weekend marked by intense volatility and a notable 15% price drop.
• Amidst geopolitical tensions in the Middle East, Bitcoin maintains its position above the critical $60,000 support level, underlining its stability in uncertain times.
• Traders witness a significant reduction in leverage, with approximately 30% of open interest disappearing abruptly, highlighting the market’s vulnerability to sudden shifts.
• As the much-anticipated Bitcoin block subsidy halving approaches, market anticipation intensifies, contributing to heightened volatility and speculative activity.
• Hong Kong’s recent approval of Bitcoin and Ether ETFs presents a promising opportunity for increased participation from Chinese investors, offering a contrasting narrative to the subdued sentiment surrounding US ETF inflows.

Read More: Bitcoin Halving 2024

Bitcoin Starts New Week Amid Recovery Efforts

Bitcoin (BTC) enters the new week with recovery efforts after a 15% dip, signaling resilience amid geopolitical tensions. Altcoins suffer most from the market reaction, but Bitcoin holds above $60,000 support. As Bitcoin’s next block subsidy halving approaches, traders brace for continued volatility.

BTC/USD | Source: TradingView

The weekend saw a crypto market nightmare unfold, with geopolitical unrest triggering rapid sell-offs. Bitcoin and altcoins plummeted, with BTC/USD hitting lows just above $61,000. While Bitcoin’s dominance surged, altcoins faced significant losses, but market analysts suggest this correction may have purged over-leveraged positions.

Market Recovery and Technical Analysis

Despite the flash crash, Bitcoin shows signs of resilience as it grinds upwards from the lows. Analysts indicate a consolidation phase near all-time highs, with spot trading premiums remaining intact. Order book data suggests ongoing healthy market conditions, with significant asks around $68,500. The weekly close near $65,750 indicates potential bullish momentum.

Know More: Bitcoin Price Prediction

Macroeconomic Factors and Federal Reserve Comments

The upcoming week combines US macroeconomic data and Federal Reserve commentary, with the Middle East tensions adding to market sensitivity. Key events include data on jobless claims and speeches by Fed Chair Jerome Powell. Traders closely monitor inflation and interest rate expectations, with fiscal spending influencing market dynamics.

With days until the block subsidy halves, attention shifts to price volatility. Miners face revenue restructuring as block rewards halve to 3.125 BTC. Despite expectations of increased selling pressure, miner wallet balances remain stable. On-chain analytics highlight spikes in miner revenue during previous Bitcoin halving cycles.

BTC balance in miner wallets | Source: Glassnode / CoinTelegraph

Regulatory Developments and Investor Sentiment

Hong Kong’s approval of Bitcoin and Ether ETFs marks a positive start to the week, potentially expanding Chinese market access. While US ETFs face volatility, they continue to attract significant inflows. Crypto sentiment remains “greedy,” indicating ongoing optimism despite market fluctuations. Survey results suggest mixed expectations for BTC/USD around the BTC halving.

In summary, Bitcoin’s resilience amid geopolitical tensions and market fluctuations underscores its role as a global asset. As the Bitcoin halving 2024 approaches, traders navigate volatility while anticipating potential price milestones. Regulatory developments and investor sentiment continue to shape market dynamics, highlighting the evolving landscape of crypto trading.

Source: CoinTelegraph