Bitcoin price has been consolidating in the past few weeks after reaching a new all-time high of around $74k.
After consolidating in the past five weeks, Bitcoin (BTC) price has shown early signs of bullish continuation in the near term. During the early London session on Monday, Bitcoin price traded slightly above $71,000, up over 2 percent in the past 24 hours. As a result, Bitcoin price is gradually breaking out of a micro logarithmic falling trend, which could yield a rally towards a new all-time high (ATH) in the coming days.
Moreover, heightened Bitcoin demand from institutional investors has fueled macro-bullish sentiments. According to a weekly report from CoinShares, fund inflows to crypto investment products amounted to about $862 million last week.
Closer Look at Bitcoin Halving
As of this report, around 838,268 Bitcoin blocks had successfully been mined, thus leaving around 1,738 blocks to be mined until the fourth Bitcoin halving. As a result, Bitcoin miners have been leveling up their rigs to match up their mining operations. Furthermore, the Bitcoin mining difficulty will scale higher in the coming months filling the halving event.
According to on-chain data from CryptoQuant, the Bitcoin mining costs are set to double to $80k by the end of this month, for the most commonly used miners, S19 XP. For instance, Bhutan’s investment arm, Druk Holdings & Investments, and Bitdeer Technologies Group announced last week that plans are in place to increase the country’s Bitcoin mining capacity sixfold to 600 megawatts by early next year.
#Bitcoin mining costs are set to double by the end of the month after the halving, jumping from $40K to $80K for S19 XPs, commonly utilized by US miners.
Chart by @clayop pic.twitter.com/iElf2i7Kok
— Ki Young Ju (@ki_young_ju) April 8, 2024
Bitcoin mining will make the flagship coin more desirable among institutional investors and hedge fund managers. Notably, most investors have been fleeing the inflationary fiat market and low-performing stock industry. Moreover, the Bitcoin halving will reduce the annual inflation from 1.68 percent to about 0.84 percent.
Midterm BTC Price Expectation
Bitcoin price has been forming a bullish pennant pattern on the daily time frame in the past five weeks. With Monday’s bullish breakout from a falling logarithmic trend in the four-hour time frame, it is safe to assume the bulls are in control.
According to a technical analysis by a popular crypto analyst Ali Martinez, Bitcoin price is aiming for $85k if it consistently closes above $71K in the coming days.
#Bitcoin appears to be breaking out! If $BTC can hold above $70,800, the next target becomes $85,000! pic.twitter.com/JPLf18KZvt
— Ali (@ali_charts) April 8, 2024
Meanwhile, Bitcoin’s dominance is on the brink of a reversal after reaching a psychological resistance of around 54 percent. With Gold and Silver scaling in price discovery mode, most experts are confident of a super cycle ahead
During the weekend, #Bitcoin is back at $70K.
– The markets are stronger than we think they are.
– Dips on #Altcoins are massive entries.
– There is a likely case of a new ATH pre-halving.
– The rotation towards Altcoins is coming.— Michaël van de Poppe (@CryptoMichNL) April 7, 2024
As Bitcoin price scales to new heights, a popular crypto analyst Michaël van de Poppe highlighted that crypto cash rotation towards altcoin will continue in the coming weeks. Moreover, altcoins have a higher return-to-risk ratio, especially amid the notable adoption of web3 products and real-world assets (RWA) tokenization.
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