Bitcoin On Steroids: Key Technical Factors Fueling The Rally To $70,000
February 19 2024 - 5:00AM
NEWSBTC
The price of Bitcoin has been on a tear in recent weeks, surging
over 30% and breaching the $50,000 mark. At the time of writing,
Bitcoin was trading at $52,377, up 1.3% and 8.8% in the daily and
weekly timeframes, data from Coingecko shows. Related Reading:
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Details This bullish momentum has ignited fresh optimism among
investors, with many wondering if the world’s leading
cryptocurrency is poised for another assault on its all-time high
of $69,000. Analysts point to several key technical factors that
could propel Bitcoin towards new heights in the coming months. Here
are three of the most prominent: Halving Frenzy April 2024 marks
the next Bitcoin halving, a highly anticipated event that occurs
roughly every four years. During this event, the block reward for
miners, currently 6.25 BTC, is slashed in half, effectively
reducing the rate at which new Bitcoins enter circulation. This
engineered scarcity has historically triggered significant price
rallies, and analysts predict a similar outcome this time around.
Source: IntoTheBlock IntoTheBlock, a quantitative crypto analysis
firm, estimates a surge to a new all-time high just one month after
the halving. They reason that miners, better prepared for the
halving’s impact this time, will hold onto their rewards, limiting
selling pressure and potentially boosting the price. Additionally,
the halving reduces Bitcoin’s inflation rate from 1.7% to 0.85%,
further enhancing its store-of-value appeal. We give Bitcoin 85%
odds of hitting all-time high in the next 6 months. Curious what’s
behind this prediction? read our latest
newsletter👇https://t.co/acx2Fbi1Dw — IntoTheBlock (@intotheblock)
February 17, 2024 The CEO of Sound Planning Group and an investment
adviser representative, David Stryzewski, gave an explanation of
his belief that the price of bitcoin is about to experience a
significant upswing on the Schwab Network on Thursday. He clarified
that the triggers for the rising price momentum for bitcoin are the
impending halves of the cryptocurrency and the recently introduced
spot exchange-traded funds (ETFs) that the U.S. Securities and
Exchange Commission (SEC) approved last month. Macroeconomic
Tailwinds The Federal Reserve’s dovish monetary policy stance,
aimed at combating deflationary pressures, is another factor
buoying Bitcoin’s prospects. The anticipation of interest rate cuts
and increased liquidity injections into the financial system could
benefit Bitcoin alongside other risk assets. Bitcoin market cap
remains in the $1 trillion territory. Chart: TradingView.com ETF
Explosion The long-awaited approval of Bitcoin Exchange-Traded
Funds (ETFs) in late 2023 has opened the floodgates for
institutional investors to enter the crypto market. These
investment vehicles, which track the price of Bitcoin without
requiring direct ownership, have already attracted billions of
dollars in inflows. This surge in institutional participation is
expected to continue in Q2 2024, potentially pushing the price of
Bitcoin even higher. The Impact Of US Elections Furthermore,
the upcoming US presidential election in November 2024 could
provide an additional tailwind. If a Bitcoin-friendly candidate
emerges victorious, it could lead to policies that accelerate
cryptocurrency adoption and further legitimize Bitcoin as an asset
class. Related Reading: UNI Jumps Over 12% – Here’s Why Investors
Flock To This Token Not Without Risks The remarkable surge of
Bitcoin as it tries to go a notch higher to the vaunted $70,000
level can be attributed to a convergence of key technical factors,
propelling the cryptocurrency into uncharted territory. The
relentless growth of the hash rate, improved scalability solutions,
and ongoing developments in the blockchain ecosystem are
collectively fueling this rally. Featured image from Freepik, chart
from TradingView
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