Bitcoin Rockets Toward 70,000 as Bullish Fervor Rises
Bitcoin Rockets Toward 70,000 as Bullish Fervor Rises
The recent approval of bitcoin ETFs has supercharged interest
- Bitcoin surges above $68,000 and eyes record highs from 2021.
- Risk-on mood comes after successful ETF launches and ahead of halving.
- Technical outlook remains bullish, but longs may want to wait for a pullback.
Bitcoin (/BTCH4) surged higher on Monday to start the week, extending a recent slew of bullish price action that has riled up cryptocurrency investors into a fervor of bullish speculation.
Many now see Bitcoin hitting $70,000 as a done deal, and from the way things are currently going, those predictions look like they may come true in short order.
ETF flows boost bitcoin
The recent approval of bitcoin exchange-traded funds (ETFs) has supercharged interest in the product despite investors already having access to the product through other means.
However, ETFs offer investors an easy and straightforward way to gain exposure to bitcoin, and the various bitcoin ETFs have all performed well since their launch. Plus, the Security and Exchange Commission’s approval of those producers further legitimized the crypto asset.
In fact, last week saw the largest volume of inflows into bitcoin ETFs at over $20 billion, according to Bloomberg data. The iShares Bitcoin ETF (IBIT) crossed the $10 billion threshold for total assets and was the fastest ETF to cross that mark, per Bloomberg’s Eric Balchunas, who noted the achievement in an X post.
Bitcoin halving approaching
One of the main events for crypto in 2024 is bitcoin’s halving, which is expected to come next month in April. Halving, which happens roughly every four years, reduces by half the reward for solving cryptographic puzzles. Essentially, it reduces the supply of new bitcoins and, thus, theoretically, should lead to a price increase.
The recent rise in price could be partly due to the anticipated drop in supply since traders know the event is coming. While there is debate about whether the halving will directly impact the price, it is generally seen as a bullish catalyst. The last halving was on May 11, 2020, when the amount of bitcoin awarded dropped from 12.5 bitcoins to 6.25 bitcoins. In the 30 days following that event, bitcoin prices rose 12.5%.
Bitcoin technical outlook
Bitcoin, on a continuous contract basis ($/BTC), hit the 2.618% Fibonacci extension from the January swing high to swing low.
While it may prove to be an uneventful technical marker, the price does appear rather extended from its 9-day exponential moving average. While that doesn’t necessarily mean a pullback will come soon, the fact that /BTC has run so high in such a brief time makes a long bet at the current prices potentially more vulnerable. Those who are looking to get long may want to wait for a pullback, with the EMA offering a possible level of support to get long.
Thomas Westwater, a tastylive financial writer and analyst, has eight years of markets and trading experience. @fxwestwater
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