Bitcoin’s price shot up to its highest point since the much-discussed halving event on April 19, reaching a recent high of $67,000.
According to data from CoinMarketCap, the largest digital asset has increased by about 3% in the last day and by more than 9% in the past week. The current price is $66,750.
The present range is undoubtedly forming a bullish continuation pattern. If there’s a breakout, Bitcoin could reach a record high. Over the last three weeks, Bitcoin has been exceptionally optimistic, with a 10% increase in price from $56,500 to $67,654.
In addition to developing a higher low formation, the rebound supported by rising trading volume also suggests a shift in the market attitude toward buying on dips.
Recent market indicators affirm that Bitcoin is presently breaking out of the inverted head-and-shoulders pattern. The technical price target is about $75,000.
The virtual asset crashed to less than $57,000 last month due to several factors, including geopolitical unrest, waning investor excitement over new spot exchange-traded funds (ETFs), and investor concern about the Federal Reserve’s next moves.
This year’s surge in Bitcoin’s value has primarily been attributed to new investors funding the commodity through the recently approved spot ETFs. These investment vehicles have attracted billions of dollars in capital inflows due to their enormous popularity.
Since the introduction of Bitcoin ETFs, the amount of Bitcoin held by addresses with more than 1,000 BTC has increased by 250,000 BTC. With this rise, whale holdings have returned to levels seen before the collapse of FTX.
According to data from Bitcoin brokerage River, by the end of March, spot Bitcoin ETFs were held by about 13 of the top 25 U.S.-based hedge funds. Since then, Bitcoin has been increasing, although its price is still lower than its all-time high of $73,737 reached in March.
Outlook
Global investment firm Bernstein’s analysts increased their estimate for the price of Bitcoin from $80,000 to $90,000. The increase in the price target coincides with Bitcoin’s surge to $73,000.
Analysts Gautam Chhugani and Mahika Sapra wrote in a research report that “we continue to find bitcoin miners compelling buys for equity investors seeking exposure to the crypto cycle” due to the recent bull run in cryptocurrency, strong inflows into exchange-traded funds, aggressive miner capacity expansion, and record-high miner dollar revenues.
It is difficult to overlook the significance of the halving and its compounding effect on an already tight supply of Bitcoin, even though it is unknown exactly what will happen with it.
As gravity is to the solar system, so too is the relationship between supply and demand to the value of an asset. All patterns and actions stem from it. As long as demand for an asset remains steady, any change in its supply will drive up the price of that commodity, and from nearly all accounts, it appears there will be continued demand for Bitcoin.