Category: BTC news

Thomas Jong Lee, the Chief Executive Officer (CEO) of Fundstrat, an independent financial research boutique, has maintained a bullish stance on Bitcoin. The financial analyst has predicted that the world’s largest cryptocurrency could surge massively, doubling its current price to reach $150,000 during the 2024 crypto market cycle. 

Bitcoin Could Go Parabolic In 2024

During a recent interview on Squawk Box, CNBC on May 7, Lee doubled down on his previous Bitcoin forecast, expressing strong confidence that the pioneering cryptocurrency would experience a dramatic surge before the end of 2024. He predicts that Bitcoin, currently priced at $62,371, according to CoinMarketCap, will exceed previous all-time highs and reach $150,000. 

Related Reading: Can Ethereum Reclaim $4,000? Fragile Fundamentals Threaten To Send ETH Crashing

The Fundstrat CEO disclosed earlier in April in an interview with CNBC Television, that “Bitcoin would definitely make new all-time highs this year,” predicting that the cryptocurrency could surge to $150,000 in 2024, and $500,000 long term. 

He highlighted that the strong demand for BTC has been fueling its price increase. Furthermore, the integration of the Rune Protocol, a new token standard for issuing fungible tokens on the Bitcoin network, has also bolstered the blockchain’s network. 

Lee’s ambitious forecast of Bitcoin comes at a time when the market has been experiencing significant volatility and periods of fluctuations. Bitcoin previously surged to an all-time high above $73,000 in March, propelled by the hype and demand for Spot Bitcoin ETFs.

However, after Bitcoin halving on April 20, which many analysts and investors believed would trigger another price rally, BTC witnessed a dramatic drop, falling as low as $57,000 at some point in May. 

Despite the upheaval in the broader crypto market, Lee remains optimistic about Bitcoin’s long-term value. His unwavering confidence in the cryptocurrency’s robust price fundamentals is reflected in his expectations of a potential price surge to or even exceeding half a million in the coming years. 

Factors Point To Upward Momentum After FED Rate Cut

While Lee made his bullish projections about Bitcoin, he also discussed the present inflationary situation and economic conditions of the United States. According to the Fundstrat CEO, inflation in the US is set to cool off dramatically, potentially triggering an upward momentum for Bitcoin if this happens. 

Related Reading: Here’s How This Ethereum Whale Made $16 Million From A Single Trade

The CEO disclosed that the Federal Reserve (FED) currently has more leeway to cut rates, citing their impacts on the country’s banking balance sheet. Although he refrained from specifying a precise timeline for the drop in the US inflation rate, Lee indicated that it could potentially occur by the second half of 2024. 

Overall, the Fundstrat CEO has maintained an optimistic outlook for inflationary pressures in the US, with Bitcoin typically serving as a hedge against inflation and a store of value during these periods of economic uncertainty. 

The recent unimpressive price action of Bitcoin is playing out in the minds of institutional investors, with recent data highlighting their bearish sentiment. This has led to a wave of massive outflows from  Bitcoin investment products, which could negatively impact the flagship crypto. 

Bitcoin Investment Products Record $284 Million Of Outflows

CoinShares revealed in a blog post that Bitcoin investment funds recorded an outflow of $284 million last week. Most of these outflows are said to have come from the US Spot Bitcoin ETFs, which saw outflows of $156 million last week. CoinShares noted that last week was the first time these funds recorded such a measurable amount of outflows. 

Related Reading: Can Ethereum Reclaim $4,000? Fragile Fundamentals Threaten To Send ETH Crashing

These US Spot Bitcoin ETFs indeed had a week to forget last week, as even BlackRock’s iShares Bitcoin Trust (IBIT) recorded its first day of outflows since launch, with almost $37 million exiting the fund. 

CoinShares suggested that the magnitude of outflows was likely due to Bitcoin dropping below $62,000, which they estimate is the average purchase price of these ETFs since launch. Therefore, they claim that Bitcoin’s decline may have triggered automatic sell orders. 

Before now, institutional investors had already shown mixed feelings towards these funds thanks to Bitcoin’s recent price action. As such, it makes sense that Bitcoin dropping below $60,000 made them panic sell instead of holding their positions. 

Despite this development, CoinShares noted that the Spot Bitcoin and Ethereum ETFs in Hong Kong which launched last week, were a bright spot, recording $307 million in inflows in the first week of trading. The launch of these funds could prove timely, with Bitcoin needing a catalyst to continue its upward trend. 

Interestingly, CoinShares revealed that Bitcoin was the only crypto asset to record outflows. On its part, Ethereum broke its seven-week streak of recording outflows, with $30 million flowing into Ethereum investment products. Other altcoins like Avalanche, Cardano, and Polkadot also saw inflows. 

Spot Bitcoin ETFs Still Not In The Clear

With Grayscale’s GBTC recording its first day of net inflows last week, there was the feeling that such development could spark a turnaround in the outflows that the Spot Bitcoin ETFs have been recording. However, that hasn’t been the case. On May 7, these funds recorded a net outflow of $15.7 million. 

Related Reading: Here’s How This Ethereum Whale Made $16 Million From A Single Trade

GBTC was again the primary culprit, with the fund seeing a net outflow of $28.6 million. These outflows have continued to affect Bitcoin’s price negatively, given the amount of selling pressure it is piling on the flagship crypto. 

At the time of writing, Bitcoin is trading at around $62,300, down over 2% in the last 24 hours, according to data from CoinMarketCap. 

Bitcoin (BTC) has experienced a price slowdown, having recently recovered above $60,000. This tepid price movement is believed to be due to a couple of factors, including the reduced demand for the Spot Bitcoin ETFs. 

Spot Bitcoin ETFs Have Lost Their Spark

The Spot Bitcoin ETFs recorded billions of dollars in net inflows in the first three months of launch. This contributed to the significant rally that Bitcoin recorded right around when the funds were approved, with the flagship crypto rising to a new all-time high (ATH) in March. However, demand for these funds has declined since the start of this month. 

Research firm Kaiko also noted in its recent report that net inflows across all ETFs have steadily dropped for a while now. This has ultimately affected Bitcoin’s bullish momentum, with the flagship crypto trading sideways. Bitcoin’s price performance in the last 24 hours suggests that the recovery above $60,000 wasn’t necessarily a bullish reversal.

Andrey Stoychev, Head of Prime Brokerage at Nexo, had previously warned that Bitcoin was unlikely to experience any significant price surge without a catalyst. He added that the crypto token would likely continue to trade around the $67,000 price range. That means one can expect Bitcoin to keep bouncing off the support and resistance in the meantime. 

The silver lining is that the demand in the Spot Bitcoin ETFs could pick up soon enough, with these funds likely to provide a much-needed boost to Bitcoin’s price when that happens. A trend reversal for these ETFs looks imminent, especially after Grayscale’s GBTC recorded its first day of net inflows on May 3. 

Another Reason Why Bitcoin’s Price Is Down

Crypto analyst Mikybull Crypto also recently predicted that Bitcoin could drop below to clear the CME (Chicago Mercantile Exchange) gap at around $62,580. This price gap exists because the CME’s Bitcoin futures market doesn’t run on weekends. The crypto analyst added that things could pick up once Bitcoin clears the CME gap. 

The analyst also suggested that the worst may be behind, irrespective of whether Bitcoin continues to trade sideways, as he stated that the crypto token’s local bottom is in. However, Mikybull Crypto also predicts that Bitcoin will need to clear out the $67,000 price level and consolidate before it can move towards $73,000. 

In anticipation of this price surge, now looks to be an excellent time to accumulate the flagship crypto as crypto analyst Ali Martinez mentioned that Bitcoin’s Market Value to Realized Value (MVRV) 90-day ratio indicates that it is still in a “prime buy zone.”

At the time of writing, Bitcoin is trading at around $63,400, down over 1% in the last 24 hours, according to data from CoinMarketCap. 

Crypto research platform 10x Research recently noted that the Bitcoin Relative Strength has jumped to 40%. In line with this, they provided insights into what major moves the flagship crypto might make soon enough. 

What Next For Bitcoin?

In their newsletter titled “Fake Dip?” 10x Research drew the crypto community’s attention to the fact that Bitcoin has historically experienced potential rallies whenever its relative strength index (RSI) drops to 40%. As such, there is the possibility that BTC could again rally following its recent decline. 

The research platform warned that a “line in the sand” at the $62,000 mark could keep the flagship crypto from rallying. However, Bitcoin has already broken above that level, which could mean there is still a bullish sentiment around the crypto token. 

Meanwhile, the research hinted that BTC would need a catalyst to enjoy a sustained rally. They highlighted four bullish events that helped Bitcoin enjoy a parabolic run soon after breaking a vital support level. These events included Treasury Secretary Janet Yellen’s bid for uncapped deposit insurance, BlackRock’s application for a Spot Bitcoin ETF, Franklin Templeton also filing for a Spot Bitcoin ETF, and when US Core PCE dropped below 3.0%.

This echoes the sentiment of Andrey Stoychev, Head of Prime Brokerage at Nexo, who previously mentioned that Bitcoin would need a catalyst to make a significant move to the upside. He predicts that Bitcoin will only continue to trade around the $67,000 range without this catalyst. 

10x Research didn’t sound optimistic about BTC enjoying a sustained rally, as their trend model indicates that the flagship crypto is in a downtrend. Despite that, they are not ruling out the possibility of BTC experiencing a bullish reversal. The research firm also revealed that they would look to buy the dip if Bitcoin drops significantly or rallies from here. 

BTC Still Destined To Hit New Highs

Crypto analyst Mikybull Crypto recently suggested that Bitcoin will still hit new highs. He stated that Bitcoin’s current price action is meant to create “more fear across the market and then bottom for upward continuation.” Crypto analyst Ali Martinez also recently suggested that the bull run was far from over, bearing in mind that Bitcoin consolidated around this period in the last two bull runs. 

He claimed that BTC might be over 500 days away from hitting its market top for this cycle. As to how BTC could rise, Martinez mentioned that it could hit a new all-time high (ATH) of $92,190 if it breaches the resistance level of $69,150. It is also worth noting that crypto analyst PlanB stated that Bitcoin hitting $100,000 this year is “inevitable.”

At the time of writing, BTC is trading at around at around $63,500, up over 7% in the last 24 hours, according to data from CoinMarketCap.

Bitcoin is now at a critical junction, which many determine its price trajectory for the rest of the year. The crypto has managed to return into $60,000 territory after dropping down to $56,000 for the first time since April. Some analysts are of the notion that the Bitcoin bulls haven’t actually started on their momentum yet, with many expecting a surge above $74,000 in the coming weeks. 

According to a crypto analyst, impulse waves formed by Bitcoin over the past 1.5 years are indicating that the price of Bitcoin will soon jump to between $90,000 and $100,000. 

Bitcoin To $90,000

A crypto analyst known pseudonymously as TechDev recently shared a Bitcoin price outlook on social media platform X with over 448,000 followers. Interestingly, his analysis is based on Elliot impulse waves, a technical analysis tool that has become extremely popular among crypto analysts when forecasting Bitcoin’s price. 

According to the BTC/US Dollar 2D timeframe shared by the analyst, Bitcoin has been forming impulse waves on an uptrend since May 2023. The chart indicated that the recent correction since Bitcoin reached an all-time high of $73,780 is the fourth impulse wave formation, which is generally known to be a corrective wave. Interestingly, the asset is now at a critical junction after bouncing up at $56,800. 

As noted by the analyst, Bitcoin is set to form its fifth (bullish) impulse wave and go parabolic in the coming months. The first price target is around $90,000 to $100,000 in the short term. The second price target is around the projected peak of the fifth impulse wave, which sits just below $150,000.

TechDev’s analysis is based on a similar five-impulse wave formation in the 2020 to 2021 bull market cycle. A similar fourth impulse wave correction during this period saw Bitcoin falling from $41,000 to $29,000 in early 2021. However, a rebound led to the formation of a fifth (bullish) impulse wave, pushing the price of Bitcoin to its former all-time high. 

The impulsive structure of the last 1.5 years says 90-100K is next. $BTC pic.twitter.com/jboA0rQ3Qs

— TechDev (@TechDev_52) May 3, 2024

What’s Next For Bitcoin Price?

At the time of writing, Bitcoin is trading at $63,275 and up by 6% in the past 24 hours. Since the launch of Spot Bitcoin ETFs in the US, Grayscale’s GBTC recorded its first day of inflow, totaling $63 million on May 3. Investors are hopeful and speculating how this might kickstart a new bull run for the cryptocurrency.

According to an analyst, Bitcoin has successfully defended a correction below the 21-day exponential moving average (EMA). The next step is crossing above resistance around $63,488. 

The Bitcoin price continues to trend below $60,000 as a 20% decline triggered a brutal market-wide crash. This has exposed multiple critical support points for the cryptocurrency, some of which the price has already fallen below. In light of this, a crypto analyst known as Norok has revealed the level the BTC price must not fall below to maintain its bullish trend.

Bitcoin Price Must Hold Above $51,800

In an analysis posted on the TradingView website, crypto analyst Norok revealed that $51,800 is now the most important support level for Bitcoin. Norok pointed out that Bitcoin has since returned to its last support level which was last seen in December 2023, making this a crucial support.

In the meantime, the support that had been built up by bulls at the $62,000 level has since been broken by bears and has now been turned into resistance. Nevertheless, the crypto analyst does not believe that the Bitcoin price has turned bearish, despite the crash that has rocked the crypto market.

For Norok to turn bearish, he stated that the BTC price would have to break down below support at $51,800. According to him, such a move will invalidate whatever bullish thesis is in play for Bitcoin, ending the bullish trend of 2023-2024.

In the short term, Norok identifies $56,900 as a level that bulls must hold. He explains that this could help to reinforce the current bullish trend. “Price must hold here at this Support and then it can recapture the cloud to resume to Bullish Trend,” the crypto analyst said. “This is a highly decisive moment in Price action today.”

BTC Suffers As A Result Of ETF Outflows

One major driver of the Bitcoin price decline in the last few weeks has been a turn from inflows to outflows in Spot Bitcoin ETFs. Since these ETFs require the issuers to hold BTC to support the assets they are selling to investors, inflows are incredibly bullish as these issuers have taken to buying BTC to fulfill this requirement.

However, with investors beginning to withdraw their funds, the reverse has been the case, leading to a high selling pressure in the market. Spot Bitcoin ETFs have now recorded six consecutive trading days of outflows, reaching an all-time high outflow record $563.7 million on Wednesday, according to data from Coinglass.

If these outflows continue, then the BTC price could continue to decline, and at the current rate, the pioneer cryptocurrency might be testing Norok’s $51,800 soon enough. However, a turn toward inflows would mean issuers have to buy BTC and this can translate to a price recover.

Co-founder and Chief Executive Officer (CEO) of Real Vision, Raoul Pal has shed light on the current market state and the future outlook of Bitcoin, the world’s largest cryptocurrency. Despite the cryptocurrency witnessing declines of more than 15%, the financial expert has uncovered a significant pattern that indicates a potential bull flag following Bitcoin’s price correction. 

Crypto Expert Unveils “Banana Zone” Rally For Bitcoin

In an X (formerly Twitter) post published on Tuesday, April 28, Pal shared a yearly chart depicting Bitcoin’s price movements from October 2023 to April 2024. At the time of writing, Bitcoin’s price is trading below the $60,000 mark, at $59,185, marking monthly declines of 15.12% and weekly lows of 11.31%, according to CoinMarketCap. 

The crypto analyst has suggested that Bitcoin’s recent price correction was a temporary setback. He predicts that once the market fully refreshes, what he calls “the Banana zone” will kick in. He also described Bitcoin’s recent price declines as a “pause that refreshes.” 

The pause emphasizes the final days of the crypto spring, a period marked by renewed optimism after bearish markets. A prime illustration of this phase occurred when Bitcoin surged to new all-time highs, surpassing $73,000 in March, following its decline from 2022 to 2023. 

On the other hand, the Banana zone represents a phase characterized by intense market excitement and the possibility of significant price increases. However, Pal has described this distinctive period as “when the market begins to anoint the new big L1 or L2, which explodes even vs SOL.”

The financial expert noted that once the Banana zone commences, it may pick up momentum towards the end of the year and continue well into 2025, potentially reaching peak mania. He also shared a historical pictorial analysis illustrating his Bitcoin predictions. 

In the chart, the price of Bitcoin witnessed a Banana zone rally from $1,000 to $5,000 between 2014 and 2016 and from $10,000 to $60,000 between 2019 and 2020. Basing his predictions on this unique historical pattern, Pal suggested that Bitcoin’s price action from 2022 to 2024, starting at $50,000 could potentially skyrocket to a new all-time high of $300,000. 

Crypto Summer Is The Start Of Altcoin Season

Pal has predicted that after the crypto spring, a new season for cryptocurrencies will occur, termed “the crypto summer.” The financial expert has confirmed that this period will be the start of the altcoin season, highlighting that it is typically marked by an intense bubble in the crypto fall. 

During the crypto summer, Pal projects that Ethereum would begin to outperform Bitcoin while Solana would accelerate its outperformance of both Bitcoin and Ethereum. The financial CEO disclosed that the crypto summer and fall are often confusing, as cryptocurrencies tend to adopt a narrative and may get caught up in the prevailing euphoria. 

He predicts another two or more “nasty corrections” triggered by excessive leverage before the onset of the Banana zone. Additionally, Pal has indicated that three or four cryptocurrencies are set to lead the altcoin season, with one particular cryptocurrency emerging as the “Big new entrant,” much like Solana did during the previous cycle alongside Avalanche and Polygon.

Bitcoin has finally broken below the $60,000 support level for the first time in two months. The world’s largest digital asset has largely been in a euphoria phase since the beginning of the year, particularly after the launch of Spot Bitcoin ETFs in the US market. However, the current consolidation of the price of Bitcoin indicates the euphoria might be fading.

According to a new report from Glassnode, an on-chain analytics firm, the euphoria surrounding Bitcoin, which has been active for the past 6.5 months, looks to be fading. At the same time, the BTC distribution has entered into the fear zone and investors are now heavily weighted towards selling.

Selling Pressure Rises

After reaching an all-time high of over $73,737 in March 2024, Bitcoin has declined by more than 18% as investors take profits. This drop in price has been accompanied by a rise in the percentage of addresses holding losses, indicating increased selling pressure. The percentage of addresses making a profit has fallen in tandem from over 99% to 86% at the time of writing. 

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On-chain analytics platform Glassnode noted in its recent report the consolidation action. According to the Net Unrealized Profit & Loss (NUPL) metric, Bitcoin has been in a euphoria mode very early in this cycle when compared to past cycles. Notably, the NUPL crossed over 0.5 approximately 6.5 months before the just concluded halving amidst hype about Spot Bitcoin ETFs.

This is in comparison to the 2021 market cycle, where the NUPL was triggered into a profit zone 8.5 months after the Bitcoin halving. This metric suggests the market is still in its euphoria phase for the last seven months but has cooled off significantly due to correction in the past two months.

Interestingly, the report noted a “distinct uptick in net outflows” across all wallet sizes throughout April, indicating the current sentiment among traders. This means traders are now in a sell-side pressure across the board. Furthermore, a majority of short-term (one week to one month) holders have been posting losses on the 90-day +1sd level since March. 

What Does This Mean For Bitcoin?

While the “fear” rating may worry investors, a pullback after such a steep price rise is considered healthy by most crypto analysts. Many long-term holders are still holding strong and are waiting for the halving effect to kick in. At the time of writing, Bitcoin is trading at $59,899 and is down by 5.35% in the past 24 hours.

Related Reading: Crypto Funds Mark 3rd Consecutive Weeks Of Outflows With $435 Million In Withdrawals

Considering the current cost-basis for short-term holders (STH) is at $66,700, and their realized price is at $59,800, many more holders in this cohort have possibly entered into the loss zone. 

According to crypto analyst Ali Martinez, $59,800 is a key price level to watch, as history has shown Bitcoin tends to bounce over the STH realized price.

The Bitcoin price continues to fluctuate wildly after crashing from its all-time high price above $73,000. This has triggered a wave of bearish sentiment in the market, causing a large number of crypto traders to go short on the pioneer cryptocurrency. As a result, these bears lose, risking a large amount if the Bitcoin price resumes its bullish rally.

Bears Will Lose $7.2 Billion If Bitcoin Reclaims All-Time High

In a post shared on X (formerly Twitter), crypto analyst Ash Crypto revealed an interesting trend concerning Bitcoin that has been developing. The screenshot shared shows that a large number of short trades have been placed on BTC, with the expectation that the price could continue to fall.

Now, so far, these bulls look to be right as Bitcoin has failed to successfully clear $67,000. However, they stand to lose a lot of money if BTC is able to clear this resistance and resume upward. According to Ash Crypto, there is over $7.2 billion worth of BTC shorts which risk liquidation if Bitcoin were to reach a new all-time high price above $74,000.

At the time, the Bitcoin price had recovered above $66,000, spurring a flurry of bearish activity in the market. However, these bears seem to have succeeded, as the BTC price has fallen below $64,000 at the time of writing.

As a result, bears have been emboldened, with the expectation that the Bitcoin price will still from here. So far, the liquidation trends risks have continued to rise as the BTC price falls. Data from Coinglass shows that if Bitcoin were to recover above $44,000 and reach a new all-time high, bears stand to lose over $10 billion.

BTC Bulls Are Not Giving Up

Even though Bitcoin bears seem to be making bank with the price of Bitcoin falling, the bulls are far from done. Rather, they have been using this price decline as an opportunity to fill up their bags. This accumulation has been even more prominent among Bitcoin whales, who have picked up 1.4% of the total supply in the last month.

On-chain data tracker Santiment reported that in the last four weeks, Bitcoin whales have added 266,000 BTC to their balance. The cohort responsible for this are those holding between 1,000 and 10,000 BTC, making them the mega whales. In total, they spent $17.8 billion on buying BTC in just one month.

As a result of this accumulation, these 1,000-10,000 BTC whales now hold 25.16% of all BTC in existence. Their numbers are also on the rise, with Santiment identifying this as the “Highest crowd bullish bias since all-time high week in early March.”

For now, Bitcoin continues to struggle with the bears to hold the $63,000 support. Its price is down 4.05% in the last day to trade at $63,600, at the time of writing.