Bitcoin Price Rally Continues as Halving Approaches
The pre-halving Bitcoin price rally is in full swing, with the cryptocurrency's value teetering on the edge of a decline. Currently trading near $52,000, Bitcoin has seen weekly gains of approximately 10% and monthly gains exceeding 20% as of February 17, 2024.
Investors have remained optimistic about a price increase following the upcoming Bitcoin halving event in April. Throughout January, the cryptocurrency traded between $40,000 and $47,000. However, earlier this week, Bitcoin surpassed the significant milestone of $50,000, adding to the growing anticipation.
The Bitcoin halving consists of five distinct phases: Pre-halving Downside, Pre-halving Rally, Pre-halving Retrace, Re-accumulation, and Parabolic Uptrend. The current price surge is attributed to the second phase, the pre-halving rally, which typically begins around 60 days before the halving event.
One factor contributing to the rally is the approval and influx of spot Bitcoin ETFs. As of February 16, 2024, Bitcoin ETFs have recorded a cumulative total net inflow of approximately $4.84 billion.
On February 14, 2024, Bitcoin's market capitalization surpassed the $1 trillion mark, a significant milestone for the cryptocurrency. Although the price briefly reached $52,800 on February 15, it has since dipped back into the $51,000 range, while still maintaining a market capitalization above $1 trillion. As of February 17, 2024, the current Bitcoin price stands at $51,933, with a market capitalization of $1,019,447,519,819.
While Bitcoin is currently down by 0.59% in the last 24 hours, experiencing a drop from over $52,700 to $51,900, the trading volume has also seen a significant reduction of 24% since yesterday. These indicators suggest the potential for a further drop in Bitcoin price in the coming days.
Following the Bitcoin halving phase theory, the next phase to anticipate is the Pre-halving Retrace. This phase is expected to begin 2 to 3 weeks before the halving event, placing it toward the end of March since the halving is projected to occur in the second week of April. Another price surge is expected during this phase, possibly surpassing the $55,000 mark, as Bitcoin ETF inflows continue to rise.
Analyst comment
Positive news: The pre-halving Bitcoin price rally has been successful, with weekly gains of around 10% and monthly gains of over 20%. Bitcoin’s market capitalization has surpassed $1 trillion, and the approval of spot Bitcoin ETFs has contributed to the price rally.
Short analysis: The Bitcoin market is currently showing some signs of decline, with a decrease in price and trading volume. However, based on the Bitcoin halving phase theory, the next phase is expected to bring another price surge, potentially surpassing the $55,000 mark as Bitcoin ETF inflows continue to increase.
