The Bitcoin exchange rate has significantly strengthened after a series of corrections last week. The latest price movement pushed the main cryptocurrency above the critical resistance zone, instilling optimism among investors ahead of the upcoming halving.
Analysts at CryptoQuant emphasize that the rise in the price of Bitcoin above the $72,000 mark is explained by several key factors.
Why is Bitcoin strengthening?
After several weeks of mostly downward movement, Bitcoin rose above $72,000 for the first time since March. When the BTC price reached $65,500 last week, the correction was in its final stages. Support also increased as holders of short-term positions stopped experiencing losses.
Moreover, the issuance of new USDT was accompanied by a noticeable correlation between the market capitalization of the main stablecoin and the price of Bitcoin, reinforcing the bullish trend.
A significant increase in BTC holdings, reaching a record level in reserves, indicates growing interest from long-term investors.
Finally, there is a change in the behavior of long-term investors: their distribution has weakened, indicating greater confidence in Bitcoin's long-term prospects. These factors together herald a positive forecast for the price of Bitcoin.
Cryptocurrency experts are confident in the sustainability of the current growth. Assuming that the support level at $70,800 is maintained, BTC could reach a new all-time high of $85,000.
More bullish sentiment for Bitcoin?
Crypto experts highlight the strengthening bullish sentiment towards Bitcoin despite relatively narrow trading range this week.
Firstly, there is a significant increase in spot Bitcoin ETFs, with significant surges observed in recent days. Positive news that major players in traditional financial markets, such as Citadel, Goldman Sachs, UBS, and Citi, have joined as authorized participants in Blackrock's ETF further enhances confidence in Bitcoin's legitimacy.
Additionally, large purchases of BTC calls continue, indicating traders' preference for Bitcoin. The reduction in leverage in Bitcoin, reflected in fixed financing of primary investments and a lower forward curve, creates a healthier market environment. Most importantly, the upcoming halving event has further bolstered the optimistic outlook.
Target for this bull cycle is $300,000
In the context of Bitcoin's recovery, Michael van de Poppe, a recognized cryptocurrency analyst and trader, made an intriguing forecast, noting that the main cryptocurrency is likely to reach $300,000 in this bull cycle.
His forecast aligns with the anticipation of the upcoming halving of the Bitcoin mining reward, which is expected in less than 12 days, sparking optimism within the crypto community.
According to the analyst, Bitcoin is still facing serious resistance. Nevertheless, if the coin manages to overcome this zone, it could demonstrate progress towards new all-time highs in the coming months.
Considering that BTC reached $70,000 before the upcoming halving, Poppe suggests that the coin is likely to hit a record high of $300,000 in this bull rally.
In his post, he noted that the price of Bitcoin returned to the $70,000 mark over the weekend. This indicates a bullish trend currently observed in the cryptocurrency market.
The analyst also pointed out that the strength of the cryptocurrency markets has exceeded expectations, and the decline in altcoin prices opens up new entry opportunities. Additionally, the price behavior of BTC demonstrates the potential for reaching new all-time highs before the halving, and a shift in favor of altcoins can be expected soon.
Altcoin season begins in a few weeks
The analyst also expresses optimism regarding the altcoin season. It is important to note that the price of altcoins often correlates with changes in Bitcoin dominance. However, even with Bitcoin dominance remaining high until the halving, Poppe believes that altcoins still have significant potential.
According to the expert, in the upcoming alternative season of cryptocurrency assets, the focus will be on tokenization of real-world assets (RWA), the Ethereum (ETH) ecosystem, and the network of decentralized physical infrastructure (DePIN), which is likely to advance alternative options in this cycle.
At the time of writing, the total market capitalization of altcoins, excluding Bitcoin and Ethereum, was estimated at $753.47 billion, indicating a 2% increase over the past 24 hours.
