Bitcoin’s price continues its meteoric rise, reaching a new 2024 high of $64,000 amidst investor anticipation of the upcoming supply halving event and the influx of capital from recently launched spot Bitcoin ETFs.
This month’s price increase of 50% is largely attributed to the upcoming halving, which historically has been followed by significant price appreciation. Additionally, the steady flow of funds into new Bitcoin ETFs is believed to be contributing to the current rally.
However, some analysts express concerns. They warn that the current market structure and high leverage use could lead to a sharp correction triggered by liquidations.
Despite these concerns, options analysts remain optimistic, pointing to key indicators like open interest and funding rates as evidence that the rally has room to run. Analyst Chris Newhouse emphasizes the confluence of factors driving the price up, including derivatives activity, underlying spot demand, and momentum trading.
Independent analyst Nunya Bizniz adds to the bullish sentiment, noting that past market cycles saw Bitcoin maintain an upward trend for at least 335 days after the RSI (Relative Strength Index) exceeded 70, which is currently the case.
While the price briefly dipped to $58,700 after reaching $64,000, likely due to profit-taking and leveraged long positions being liquidated, Bitcoin has since recovered nearly 5% of the lost ground.
Overall, Bitcoin’s price surge is fueled by a combination of factors, including anticipation of the halving event, ETF inflows, and technical indicators suggesting continued bullish momentum. However, the potential for a correction due to high leverage use remains a concern for some analysts.
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