After ending the previous week with a bullish Doji candlestick after the cryptocurrency halving event, Bitcoin‘s price climbed further on Tuesday. Based on recent market information, Bitcoin momentarily hit a peak of $67,200 in the past day before leveling off around $66,200 during the mid-afternoon session in London.
Most altcoins responded with heightened volatility, as expected, with Ripple Labs’ XRP and Near Protocol (NEAR) taking the lead and rising.
Insatiable Demand for Bitcoin
In a historic first, the amount of Bitcoin on centralized exchanges significantly dropped in the months leading up to the most recent halving event. Despite the reduction in rewards for mining new blocks, Bitcoin miners have continued to hoard their supply.
Previously reported by Coinspeaker, the recent authorization of Bitcoin spot ETFs in Hong Kong is expected to boost demand, as institutional investors increasingly look to include Bitcoin in their holdings to protect against inflationary pressures in the US and beyond.
The daily production of approximately 450 Bitcoins, combined with increasing demand and countries like El Salvador buying Bitcoin regularly, creates a situation where the price is expected to go up due to limited supply.
Bitfinex’s Estimate Post Halving
Based on Bitfinex’s latest market analysis, the process of Bitcoin supply becoming scarcer has started post the recent halving. The Bitfinex team predicts that the total Bitcoin selling pressure from various sources like miners and crypto traders will drop to approximately $30 million in the near future.
With approximately $150 million in daily Bitcoin Cash inflows added, the current situation would cause a significant imbalance between supply and demand, given recent declines. Moreover, on-chain information indicates that Bitcoin exchange outflows have surged to figures seen at the beginning of last year, suggesting that investors are positioning themselves for further price increases.
In simpler terms, Bitfinex analysts observed that long-term investors have been actively selling Bitcoin without causing the usual price decrease before a halving event. This suggests that new investors are effectively absorbing this selling pressure.
Midterm BTC Price Expectations
The price of Bitcoin has been bouncing back and forth between $74,000 and $60,000 over the last two months. Despite the efforts of bulls to take control, Bitcoin may continue to fluctuate in this range for some time, according to well-known crypto analyst Michaël van de Poppe. It’s even possible that this volatility could lead to an altcoin surge, as many investors anticipate.
#Bitcoin is still consolidating within the range, through which this is now more than six weeks.
Boredom has come back into the markets, but anything sub $60K is a massive buy opportunity.
— Michaël van de Poppe (@CryptoMichNL) April 23, 2024
In simpler terms, Bitcoin’s RSI value, which measures its price momentum, is once again approaching the 70 mark where it previously broke out during the bull market. This similarity to the 2016-2017 crypto bubble suggests we could be in for another price surge.
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2024-04-23 14:36