Key Insights
Bitcoin has been making 2-year highs in February 2024. It recently crossed $50k and is now in a perceived high risk zone as per on-chain data. However, experts are still confident that its rally might continue in the near future.
With it's halving event approaching soon, lets try to analyze if there is a possibility of it's price reaching a new all time high. We will also take a look at expert comments as well as technical charts.
On 14th Feb 2024, BTC's price increased from levels of $49k to $51k as the newly launched ETFs have started buying the crypto. This price was expected since a few days.
It is estimated that all these ETFs have accumulated approximately $11 billion worth of BTC since Jan 10, 2024. The total net worth of all ETFs, combined together, appears to be near $41 billion.
There has been a good institutional buying too.
Just a week ago, MicroStrategy bought $37 million worth of BTC, taking its tally to over 190k BTC.
Well known tech investor, Peter Thiel who owns stake in Meta, SpaceX, Twitter and several other known firms has invested $200 million in Bitcoin and Ethereum amid this bull rally.
Another major achievement of this bull market has been that it has led the combined crypto market cap to $2 trillion. This was last achieved in late 2022.
Bitcoin too has achieved a market cap of $1 trillion on Feb 14, 2024. Surprisingly, it still dominates 52.7% of the crypto markets.
The price has recently shown very strong chart and candlestick patterns in the last three weeks. On Weekly charts, its is showing the formation of three bullish candles. Usually, weekly charts are used to predict the price movements of a cryptocurrency for the next few months.
Bitcoin formed a Doji candle for the second week of January 2024. This was also the week for Spot Bitcoin ETF approval. After that, it has formed three bullish candles, each bigger than the previous. This shows that the bullish momentum has continued after ETF approval.
Now, both RSI and MACD has shown extreme bullishness too.
RSI is at 79, which shows extreme momentum. However, this is also the point where a reversal is most likely to occur. This zone is known to be risky and often witnesses quick reversals, even if they are short.
MACD has also shown a divergence in its charts. The MACD line (blue) is moving away from the Signal line (orange). This indicates that the short term momentum is higher than the long term momentum. This in turn means that prices are likely to remain high in the next few weeks.
We expect a new all time high if price range of $55k is achieved by mid-March 2024. There is also a possibility of consolidation of price before Bitcoin ultimately crosses its all time high.
On weekly charts, the next resistance seems near $69k. However, traders are advised to exercise caution as Bitcoin is in a technical risky zone(high RSI)
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.