Bitcoin Price: Is BTC Breaking Out Into The 2024 Pre-Halving Rally?

Technology

Market Cap Hits $1T Surpassing Giants Teslas, Walmart As BTC Tops $51k – Crypto News

Published

1 year ago

February 14, 2024

Dripp

The crypto market is stronger than expected this week, sending Bitcoin price above $51,000 for the first time since December 2021. Altcoins, not being left behind, responded with significant strength led by Ethereum (ETH), which has reclaimed support/resistance at $2,700.

If BTC crosses above an important weekly resistance from December 2021, this pre-halving rally could continue uninterrupted and possibly peak between $54,000 and $58,000, Michaël van de Poppe, the founder of MN Trading Consultancy said via an X post.

#Bitcoin breaking through $51,000 and making a new yearly high.

Mentioned earlier that there’s more strength in the markets than I expected.

Probably we’ll see $54-58K pre-halving as a potential peak. #Ethereum remains strong and is the one to follow. pic.twitter.com/uL5Nh2Tfu3

— Michaël van de Poppe (@CryptoMichNL) February 14, 2024

Bitcoin Price Market Cap Reclaims $1T Mark

The remarkable rally this week has seen Bitcoin not only stay buoyant but also on a north-facing trajectory. Investors ignored the US CPI data disappointment on Tuesday, which showed inflation is not easing as expected. They bought the dip to $48,000, allowing BTC to resume the uptrend.

For the first time in two years, Bitcoin reclaimed the $1 trillion market cap. This key milestone means that Bitcoin is now larger than giants like Tesla, Walmart, Berkshire Hathaway, and more. It is worth mentioning that market cap as a valuing method for crypto assets like BTC has its limitations, Glassnode explained.

#Bitcoin has reclaimed the $1T market cap, a key milestone, for the first time since December 2021. It now has a bigger capitalization than giants such as Walmart, Tesla, or even Berkshire Hathaway. However, for valuing digital assets like $BTC, market cap has its limitations🧵

— glassnode (@glassnode) February 14, 2024

The ETF is emerging as a formidable force in the dynamics of the market in 2024. So far, over $4 billion in inflows have been recorded, with many terming the investment products “a resounding success.”

$4 billion in inflows is a very large number bitcoin ETFs are a resounding success pic.twitter.com/9KtQxZJylc

— Alex Krüger (@krugermacro) February 14, 2024

According to SoSoValue, the total net inflows reached $630 million, setting a new record high. Total net inflows have been on an upward trajectory for 13 consecutive days.

IBIT holds the reins as the best-performing crypto with $493 million in net inflows on Tuesday followed by FBTC’s $164 million and ARKB’s $35 million.

Bitcoin Price Prediction: Pre-Halving Rally Keeps BTC On Toes

On Monday, Bitcoin surged past $50,000 and almost reached the $52,000 level, which is a key weekly resistance. The Relative Strength Index (RSI) indicator shows that Bitcoin is very close to being overbought, which suggests that the bullish trend is not over yet.

Bitcoin price chart | Tradingview

A break above $52,000 would ignite FOMO among investors speculating on further price increases with the short-term target at $54,000 while $58,000 stands out as its medium-term goal.

Key bull market indicators like the 20-week Exponential Moving Average (RSI) trail BTC price, affirm the uptrend’s strength. In case of a trend reversal, which may happen due to a likely pre-halving retracement, traders may want to cash out and take a profit.

Dips are proving to be profitable, hence, investors will take corrections seriously as opportunities to increase exposure to Bitcoin.

Bottom Line

Bitcoin is at an interesting dispensation in 2024 buoyed by the growing interest in the ETF as well as the optimism for the upcoming halving. Every four years, BTC undergoes a code-altering event that slashes miner rewards in half.

This code is engraved in Bitcoin to control inflation, ensuring the number of new coins entering the market decreases over time.

The supply cringe coupled with increased demand due to the uptake of the ETF, is expected to blast Bitcoin price to new all-time highs in 2024 while the bull run is projected to peak in 2025, roughly 18 months after the halving.