Bitcoin returns above $60,000 after a huge price increase that was triggered by a couple of significant news around the crypto market, especially the Bitcoin Halving itself.
The news mostly came from The Spot Bitcoin ETF that has been performing well, reaching a net asset value of $46.9 Billion just in the last seven weeks since it launched.
Narratives have sparked around investors that Bitcoin is soon to overtake Gold as the interest among Gold is decreasing while Bitcoin is rising, bringing the difference between the two ETFs to only half.
This substantially created a huge influx of hope that Bitcoin will go higher, bringing the bull market sooner than everyone predicted, but is that the case?
Bitcoin Returns above $60,000
Bitcoin has touched a new high since January 2022, reaching the price of $64,000, which is close to the highest price of the peak bull market of 2021.
The huge increase of price came from the narrative that institutional investors are buying Bitcoin in a large sum amount, leading retail investors to follow suit which led to Bitcoin’s current price.
Overall sentiment around Bitcoin is currently considered well as investors predict that the Bitcoin price could go higher if institutional investors keep the same amount of daily transaction volume as the last three days.
This is because in the last couple of days, the average transaction volume of Bitcoin Spot ETF has reached $3 Billion with its peak being yesterday at around $7 Billion.
With this much transaction volume, the overall buying volume stands at an average of $600 Million to $200 Million daily, which creates a sense of hope among retail investors that Bitcoin’s price will continue to go up.
The hope is evident by the open interest in the BItcoin futures market, where the overall open interest has been growing significantly, with leverages going through the roof.
If this keeps on continuing, it will be bad if Bitcoin’s price suddenly goes down because its predicted that there will be $1 Billion in liquidations among retail investors.
Can it Go Higher?
So the question is, can it go higher? To answer that question, we need to have a look at the current Bitcoin price to determine whether it can go higher.
Looking at the price of Bitcoin itself, it can be seen that the Relative Strength Index Indicator has shown an overbought condition.
This translates into too much buying volume which usually will lead to a correction. But looking at previous weeks, this did not stop Bitcoin from going up, hence why we are now seeing Bitcoin reaching more than $60,000.
But looking at previous bull markets and halvings, it can be seen that most of the price influx happens only before halvings and around a couple of months after halvings.
The highest level of increase before halvings usually reached no more than the previous bull market high.
Seeing this pattern and the current condition of Bitcoin’s price, it is possible that we might experience a correction before the price of Bitcoin goes even higher.
But, looking at current innovations around Bitcoin, the correction might not be too big considering Bitcoin is now more useful than ever with more DApps being built on top of it.
Overall the market condition seems to be looking a little risky which is why investors and traders are suggested to still use proper risk management and not FOMO into everything so that they can still prepare for the upcoming predicted bull run of 2025.
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