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Buckle Up! The Bitcoin Price Soars Past $60,000 for the First Time in Two Years. All-Time High is Now a Stone's Throw Away

The Bitcoin price speeds past $60,000, leaving the bears biting the dust 

If anyone still questioned whether Bitcoin and the cryptocurrency market have finally entered a long-awaited bullish cycle, recent developments have definitively silenced those doubts. The price of Bitcoin has surged past the crucial $60,000 level, a milestone not seen since November 2021 – right before the dramatic capitulation to $16,000. 

The journey back from the crypto market's depths, caused by immense selling pressure in the aftermath of the FTX collapse and global turmoil, has been long and arduous. But now, Bitcoin stands on the precipice of its all-time high, ready to venture into uncharted territory. The question on everyone's mind: is a $100,000 Bitcoin price tag in 2024 a feasible reality? Given the current momentum, CryptoStake believes the possibility grows stronger with each passing day, if not hour.

What is going on with the Bitcoin price today? 

Today's Bitcoin analysis delves into the 4-hour timeframe to dissect the current price action at this pivotal moment. During explosive rallies, identifying the peak of bullish momentum and potential corrections is crucial. Indicators like Bollinger Bands, MACD, and Stochastic can provide valuable insights.

 

BTC/USDT 4-hour chart. Source: Tradingview.

Plotting these indicators on the 4-hour chart reveals a potential climax approaching for the bull run. Both Stochastic and MACD are in overbought territory, suggesting a shift in momentum. Additionally, the price action has significantly stretched the Bollinger Bands, indicating peak volatility. While this doesn't necessarily negate another push towards $65,000, it highlights potential signs of a bull-to-bear transition.

The reasons why the price of Bitcoin keeps on rallying

The booming spot Bitcoin ETF

Excitement surrounding Bitcoin exchange-traded funds (ETFs) is fueling the recent price surge. Jim Bianco of Bianco Research highlights some impressive stats: all 10 spot-market Bitcoin ETFs have facilitated a staggering 241,000 trades in two days, surpassing even trading giants like the SPDR S&P 500 ETF (SPY) and the Invesco QQQ ETF (QQQ). This surge in activity signifies a major influx of interest and capital into Bitcoin ETFs, which now hold a combined $44 billion in assets. Furthermore, BlackRock's iShares Bitcoin ETF (IBIT) smashed its daily inflow record, attracting $520 million, highlighting the increasing popularity and impact of Bitcoin ETFs in the market.

Anticipation of central banks nearing the end of interest rate hikes

Another thing to consider is that central banks are getting closer to wrapping up their interest rate hikes, and this could give Bitcoin a boost. See, when central banks jack up interest rates, it becomes pricier for businesses and folks like you and me to borrow money. That might mean less investment happening because borrowing gets too darn expensive, especially for riskier stuff like Bitcoin.

Now, if central banks start hinting that they're done with hiking rates, folks might see it as a sign that inflation ain't gonna get much worse. That could get investors all excited about taking on more risk, like diving into Bitcoin, which could push its price up. There's this growing feeling that central banks are about to hit the brakes on rate hikes, which could make the environment friendlier for taking risks, potentially giving Bitcoin a nice little bump. But remember, other factors will still have a say in where Bitcoin's price goes from here.

The price rallies as the Bitcoin halving is getting closer 

The upcoming Bitcoin halving, scheduled to occur roughly in May 2024, refers to a pre-programmed event within the Bitcoin network that reduces the block reward for mining new Bitcoins by 50%. The halving event directly decreases the daily supply of newly minted Bitcoins entering the market. This reduction in supply, while the demand might remain relatively stable, could lead to upward pressure on the price according to the principles of supply and demand.  While not a guarantee, historically, Bitcoin price rallies have followed previous halving events. This correlation is attributed to the belief that the reduced supply creates scarcity, driving the price up in the long term. 

Overall, the upcoming Bitcoin halving is a significant event that could potentially impact its price positively, just like it did before and after the previous halving in 2020, when the Bitcoin price ended the cycle at $69,000, the all-time high that it's trying to revisit in 2024.