Bitcoin, the world’s largest cryptocurrency, is showing signs of a potential bullish resurgence despite the recent pullback in its price. The asset, which reached an all-time high of around $73,000 in March 2024, has since experienced an 11% correction, driven by slowing inflows into Bitcoin ETFs and rising tensions in the Middle East.
TLDR
Standard Chartered predicts Bitcoin could reach $150,000 by the end of 2024, implying a 127% upside from current levels.
Bitcoin’s recent pullback is attributed to slowing inflows into ETFs and tensions in the Middle East, but this could reverse later in the year.
The recent halving event, which reduces rewards for Bitcoin miners, has historically led to significant price gains in the following months.
Bitcoin’s price action suggests a potential bullish trend, with the asset breaking above the crucial $66,000 mark and the MVRV Z-score indicating it is no longer overbought.
To confirm a decisive move towards new highs, Bitcoin needs to overcome the $69,000 mark, which could lead to significant liquidations of short-leveraged positions.
However, according to Geoff Kendrick, the head of digital assets research at Standard Chartered, Bitcoin’s price could still more than double by the end of the year, reaching $150,000. This prediction implies a 127% upside from the current levels and is based on a bullish setup for the crypto token that could reignite its rally.
One of the key factors contributing to the optimistic outlook is the recent Bitcoin halving event, which occurred on April 20, 2024.
The halving, which takes place approximately every four years, reduces the rewards given to Bitcoin miners for creating new tokens. This reduction in the supply of new Bitcoins entering circulation has historically led to significant price gains in the months following the event.
Crypto market analyst Scott Melker points out that the previous three Bitcoin halvings ultimately drove the asset to new all-time highs and wider crypto bull markets.
He suggests that, based on historical price charts, Bitcoin may trade sideways for the next few months before experiencing a parabolic rise to new record levels.
In addition to the halving, Bitcoin’s recent price action suggests a potential bullish trend. The asset has broken above the crucial $66,000 mark, which could signal a change in market sentiment and the end of the current price correction.
Bitcoin’s MVRV Z-score, a technical indicator used to assess whether an asset is overbought or oversold, has fallen to 2.08, indicating that Bitcoin is no longer overbought and is following a healthy upward trend in line with previous bull cycles.
Despite the positive indicators, some experts caution that it may be too early to confirm the end of the current correction due to decreased market depth, which could result in more price volatility.
Jag Kooner, the head of derivatives at Bitfinex, notes that while Bitcoin has broken out of its lower timeframe range, the market depth is considerably lower than a few weeks ago, making it easier for smaller orders to move the market.
To confirm a decisive move towards new highs, Bitcoin needs to overcome the $69,000 mark. A potential move above this level could lead to significant liquidations of short-leveraged positions, amounting to over $1.12 billion.
Kristian Haralampiev, structured products lead at Nexo, believes that key levels to confirm the bullish sentiment and price movement are in the $69,000 to $70,000 bracket, and that price action above these levels could lead to an attempt from Bitcoin to break out to all-time high levels.
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