28 February 2024
Bitcoin price action continues to pick up steam following unprecedented institutional demand amidst an asset supply that’s on the brink of being slashed by 50%. Today, the BTCUSD trading pair has broken cleanly above $60,000. What does this mean for the top cryptocurrency by market cap? Are new all-time highs just ahead?
Bitcoin Trades Above $60,000 For First Time Since 2021
Just one month ago, Bitcoin was still stuck below $50,000 and the launch of the first ever US spot BTC ETFs were considered a sell the news event. Now, with only a day left in February, Bitcoin price is showing serious strength with a more than 40% single month increase. Bullish momentum has pushed BTCUSD above $60,000 where it is trading currently.
The bullish price action is due to the market front-running the halving now that the the impact of the introduction of the first meaningful Bitcoin ETFs are understood. ETF providers yesterday added as much as 9,000 BTC to holdings, while miners only managed to produce 900 BTC in the same timeframe. This amount is slashed by 50% at the halving in less than two months, potentially prompting institutional FOMO (fear of missing out).
With Bitcoin now above $60,000 and around 13% away from all-time highs, new price records are within striking distance. After any cryptocurrency price takes out a current peak, price action moves into discovery due to a lack of sell orders in the order book. With no historical resistance to consider, Fibonacci ratios often help pinpoint there rallies will come to a conclusion.
According to the 1.272 Fibonacci, BTCUSD could begin finding psychological resistance around $94,000 per coin. The ultimate “top” of this rally could extend to the 1.618 Fibonacci, located at around $155,000 per BTC.
To hit $155,000 per coin, Bitcoin only needs a 161% advance from current levels. To put this into perspective, the top brass crypto asset is up more than 300% from the bottom set in 2022, and there wasn’t a bull market to speak of yet. With the bull market now undeniable, it isn’t unreasonable to assume BTCUSD could climb by 161% over the remainder of 2024.