By
Steve Muchoki
May 6th, 2024
Though at the moment Bitcoin price is far away from its all-time high, some analysts expect a bull run in the near future.
The subject of volatility surrounding the world’s largest digital currency Bitcoin keeps the crypto world optimistic about the coins’ next bull run. Currently trading at $8,124, down by 3.35% in the past 24 hours, BTC has been experiencing a series of resistance in its price level since its last halving. Despite this current price, predictions have shown that Bitcoin is nearing a “Monster Move” as the on-chain data from IntoTheBlock shows tremendous buying pressure.
Since the coin dropped from $9,900 last Thursday, the price has been hovering between $9,300 and $9,900 but an unprecedented drop was seen on Monday with the coin shrinking to $8,997.49.
Bitcoin Price Hike Speculation Due to Halving
Bitcoin just had its third halving event in May and due to past halving events, BTC price has been projected to show a massive bull run. A recent addition to this list of optimists is Vitalik Buterin, the co-founder of Ethereum.
The "halvings cause BTC price rises" theory is unfalsifiable:
Was the peak before the halving? Then it "rose in anticipation of the halving"
During? "Because of the halving"
After? "Because of…"The last $20k peak was near the halfway point between the 2016 and 2020 halvings. pic.twitter.com/dhVxhmECQS
— vitalik.eth (@VitalikButerin) June 14, 2020
Vitalik believes a surge will come but slightly differs in his opinion of when this will happen. Bloomberg predicted the price of BTC to soar above $20,000 this year as against Vitalik’s opinion about the timing which can happen almost half-way to the next halving in 2024. No matter the position as to when this surge will happen, updates from IntoTheBlock shows a surge is imminent.
Bitcoin Buying Pressure
IntoTheBlock, the firm that boasts of harnessing human and artificial intelligence to bring insights from crypto assets believes $9,732 could be the next major resistance level for BTC. Looking at the IOMAP (In/Out of the Money Around Current Price) data, there are 2.3 million addresses with around 1.35 million BTC available with positions at this mark.
IntoTheBlock also pointed out that if Bitcoin should fall, the IOMAP analysis shows that the next support level is between $9,172 and $9,442, where almost 805,000 addresses are waiting with 509,000 BTC. This data is currently threatened with the downward rejection of BTC at $9,000 but will stay valid if an upward trend is spiked urgently.
The Bitcoin halving event may lead to the price surge in many ways including miner’s capitulation. Inefficient miners might be forced to part ways with their BTC which will further empower Grayscale institutional buyers to remain bullish on BTC. This whole event along with technical indicator data (Stochastic RSI and Chaikin Money Flow) read on the macro level, comes with the potential of increasing the net value of BTC in the nearest possible future.