Veteran trader and renowned chartist Peter Brandt has doubled down on his bullish outlook for bitcoin. After raising his bitcoin price target for this bull market cycle to $200K, Brandt pointed to “huge monthly bars” on his bitcoin price chart, stating: “My bet is that this is a ‘starting’ candle.” Peter Brandt’s Bitcoin Bull Run […]
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JPMorgan has cautioned investors that the price of bitcoin could fall to $42,000 after the halving event in April. The global investment bank’s analysts explained that $42K is the level they “envisage bitcoin prices drifting towards once bitcoin-halving-induced euphoria subsides after April.” The bank also recently stated that the bitcoin halving and the next major […]
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On Saturday, March 2, the valuation of bitcoin cash witnessed a significant increase, climbing over 40% within a 24-hour span to reach a peak of $451 each. This upward trend is attributed to the anticipated halving event, set to happen in 16 days, and the forthcoming 2024 upgrade, which is expected to implement an adaptive […]
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Bitcoin halvings have historically been viewed as a bullish event for the cryptocurrency — and the upcoming one, expected in April, could benefit from an even more ideal setup than in previous cycles, according to crypto-market observers.
Halving is a mechanism written into the Bitcoin blockchain’s algorithm to control the coin’s supply, which has a cap of 21 million. At halvings, the reward for bitcoin mining is cut in half, meaning miners will receive 50% fewer bitcoins for verifying transactions.
Halvings are scheduled to happen after every 210,000 blocks that are mined — or about every four years — until the maximum supply of bitcoin is all released.
Bitcoin BTCUSD tends to see price appreciation in the months after halvings, according to historical data. The next halving is expected to happen on April 19, according to a projection by bitcoin investment platform Swan Bitcoin.
But this particular halving comes at the first time in bitcoin’s history where the cryptocurrency faces a confluence of factors impacting both its supply and demand side, according to Cosmo Jiang, portfolio manager at crypto asset manager Pantera Capital.
As halvings control bitcoin supply, bitcoin exchange-traded funds are bringing in “steady daily inflows” into the crypto from the demand side, Jiang said in a call. In January, the U.S. Securities Exchange and Commission approved 10 bitcoin ETFs for the first time in history.
Read: 5 ways bitcoin ETFs are already changing how crypto is traded
Increased institutional participation recently pushed bitcoin to a level near its record high, less than 50 days before the expected date of the halving. Bitcoin has rallied more than 40% so far this year to roughly $62,600, and is now less than 10% off of its all-time high of $68,990, reached in November 2021.
This run-up is different from bitcoin’s historical pattern before halving, according to Martin Leinweber, digital-asset product strategist at MarketVector Indexes. Historically, bitcoin’s performance has been relatively muted in the two to three months before halving, Leinweber noted.
Meanwhile, the Bitcoin blockchain is more secure now than it has been during previous halvings, according to Adam Swick, chief growth officer at bitcoin-mining company Marathon Digital Holdings Inc. MARA Bitcoin’s total hash rate, or the total computational power securing the blockchain, hit a record high of around 600 million terahashes per second in February, according to data from Blockchain.com.
That helps alleviate some concerns around the security of the Bitcoin blockchain after the halving, as some miners may be forced to go offline when the rewards they get are cut in half, noted Swick.
While halving is generally a boon for bitcoin’s value, the crypto’s price tends to be highly volatile while macroeconomic conditions are uncertain. That may apply in the current climate, as some investors are worried that progress in disinflation may stall , while it remains unclear when the Federal Reserve will start cutting interest rates.
Michael Novogratz, chief executive at crypto investment firm Galaxy Investment Partners, recently told Bloomberg TV that bitcoin may see “some corrections” to its price before rallying to new record highs.
Historical data suggests that no Bitcoin cycle has peaked without experiencing significant double-digit corrections. These downturns, while daunting, have historically presented lucrative ‘buy-the-dip’ opportunities for investors.
As Bitcoin continues its ascent, with its price hovering above $62,000, the anticipation of a potential correction looms large, offering a window into the cyclical nature of cryptocurrency markets.
Seasoned investor CryptoJelleNL recently shared a post on X earlier today pointing towards an imminent correction in the 20-25% range for Bitcoin.
Based on cycle analysis, this predicted dip indicates a potential drop to the $46,500 range, earmarking an opportunity for investors to bolster their positions in the leading crypto.
Corrections are an essential part of a #Bitcoin bull market — but with each passing cycle, the dips become shallower.
This cycle, it looks like ±20-25% will be the sweet spot for dip-buying.
Your job is to be ready to take advantage when it comes. pic.twitter.com/xrI7iKfiPR
— Jelle (@CryptoJelleNL) March 1, 2024
This perspective gains further credence when examining the diminishing severity of corrections as the market matures; the 2016-2017 Bitcoin cycle was characterized by seven substantial corrections, with an average pullback of 32%, significantly impacting investor sentiment and portfolio values.
In the subsequent cycle that propelled BTC to its current all-time high of $69,000, the market conditions were considerably more lenient for bullish investors: experiencing five downturns, the average decline was limited to 24%.
Fast forward to the present cycle, and the landscape appears somewhat different. With only four notable corrections recorded so far and an average pullback of 21%, Bitcoin should see a notable pullback, though not as harsh as previous ones. This indicates the market’s growing maturity.
Additionally, this evolution suggests that while corrections remain a staple of the Bitcoin experience, their capacity to deter the asset’s long-term trajectory diminishes.
The potential correction for Bitcoin, as indicated by CryptoJelleNL is echoed by other market observers. Galaxy Digital Holdings CEO Michael Novogratz has also highlighted the possibility of a temporary dip, attributing it to factors such as excessive leverage among younger investors.
Despite these forecasts, Bitcoin’s current momentum remains strong, with recent price action showing a near 2% increase in the past 24 hours, underscoring the asset’s sturdy appeal.
In addition to speculative analysis, real-world examples of investor success stories provide tangible evidence of Bitcoin’s enduring allure. A notable instance is a smart whale who, per lookonchain analytics, invested $1.39 billion in Bitcoin in July 2022 at an average price of $21,629 per BTC.
With BTC price now surging past the $62,000 mark, this investor’s unrealized profit is a testament to the strategic potential of timely market entry and the value of patience in the face of volatility.
A smart whale has accumulated 22,670 $BTC($1.39B) at an average price of $21,629 since $BTC entered the bear market in July 2022.
He currently has an unrealized profit of more than $900M! pic.twitter.com/BTcijZB0IA
— Lookonchain (@lookonchain) March 1, 2024
Featured image from Unpslah, Chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Bloomberg Intelligence’s senior commodity strategist, Mike McGlone, says bitcoin is “becoming an alternative currency on a global basis,” noting that “The world’s going towards intangible assets and bitcoin is the most significant in cryptos.” However, the strategist warned that as bitcoin’s price approaches $70,000, a key test for the cryptocurrency may come “when the U.S. […]
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In the recent SlateCast episode, Texas Blockchain Council Chairman President Lee Bratcher discussed the controversial emergency survey recently issued by the Energy Information Administration (EIA) regarding Bitcoin mining energy usage. As Bratcher explained:
“[The EIA] created this farce of an emergency and rushed it through without the notice and comment period.”
He elaborated that the survey asked for proprietary information and failed to follow proper procedures, leading to a lawsuit from the Texas Blockchain Council.
According to Bratcher, it was evident that Senator Elizabeth Warren heavily influenced the EIA’s decision to issue this Bitcoin mining survey. Warren had explicitly asked the Secretary of Energy to survey Bitcoin energy use and clarified that she expected data to be collected before the next briefing.
With this context, Bratcher believes the EIA faced undue and inappropriate political pressure that led it to skirt proper procedures and fairness, ultimately necessitating the lawsuit from the Texas Blockchain Council.
Though Warren may have had reasonable intentions around understanding Bitcoin’s climate impact, Bratcher argues her demands failed to acknowledge benefits and placed disproportionate scrutiny on Bitcoin miners.
Bratcher does not believe Bitcoin mining will ever rely completely 100% on renewables but expects a future mix incorporating stranded or wasted gases. He points to projects already redirecting natural gas that would otherwise be flared into generators that power Bitcoin mining. This reuse provides environmental benefits compared to releasing unused gas.
Though likely not enough to fully power Bitcoin mining, these stranded energy sources, paired with growth in solar, wind, and other renewables, can significantly reduce the carbon footprint of mining while still leveraging fossil fuels when available.
Bratcher paints an optimistic view that with the right policies, much of Bitcoin’s energy could one day come from renewables and waste gas.
When asked about the benefits Texas offers Bitcoin mining companies, Bratcher emphasized:
“It’s really around our energy only marketplace…you’re able to create a power trading strategy that’s probably more important than your operating strategy, or at least have equal importance and, and that’s why Texas is the best place in the world to open up a business or mine Bitcoin specifically.”
He did warn new mining companies that “this is an extremely competitive industry, and people get wrecked, especially if you’re trying to jump in without experienced operators.”
Now that the EIA has rescinded the original emergency Bitcoin survey, Bratcher hopes they will take the opportunity to craft a fair and thorough data center survey. This would ideally ask standardized questions across industries about energy consumption, allowing equitable comparison and performance benchmarking.
Importantly, Bratcher stresses that the Texas Blockchain Council welcomes sharing energy usage information as long as proprietary or sensitive details are protected. He advocates that miner contributions to grid stability should be accounted for. An improved survey could enable miners to showcase their energy resilience and grid benefits.
Bratcher seeks collaborative transparency, not combative obscurity, to resolve the survey controversy. He added:
“We’re happy to share energy consumption information, and we’re happy to share. It’d be great if they ask a question about our performance on the grid, and we could give them some data about how we’re doing.”
The full SlateCast episode provides an in-depth look at the Bitcoin mining industry in Texas and the policy issues surrounding it. Bratcher makes a strong case for the benefits Bitcoin mining can provide while also acknowledging fair concerns.
With Bitcoin poised to remain a growing industry, debates like these will likely continue around its energy usage and impact on grids. Watch the full podcast below:
NEW PODCAST 🎙️ Texas Blockchain Council challenges controversial #Bitcoin mining energy survey
Featuring @lee_bratcher from @TXblockchain_ with co-hosts @akibablade and @NateWhitehill pic.twitter.com/k6kJqYALLW
— CryptoSlate (@CryptoSlate) February 29, 2024
The crypto market has shown an incredible performance over the past week. Bitcoin has sustained momentum and risen above the $60,000 level, reaching $64,000.
The levels reached at the end of February have suggested to many investors that March could be an even more impressive month for the current bullish rally.
However, no prediction is set in stone, as many factors could swing investors’ sentiments and move the trends in the opposite direction. At the moment, the crypto market seems to have taken a small pause to catch its breath.
The global crypto market reached a significant milestone for this bullish run a few days ago. As reported, the total crypto market cap hit $2T on February 27, an accomplishment not seen since April 2022.
As March begins, the market cap for the crypto market sits at $2.3 trillion, representing a 17.97% surge in the 7-day timeframe. This growth has surpassed the level established in early 2022 and potentially clears the path to the $2.4 trillion mark seen in December 2021.
Nonetheless, the market rise seemingly slowed down momentarily. The current market cap of $2.31 trillion represents a modest 1.32% decrease over the last day, according to CoinMarketCap data.
Similarly, the total crypto market trading volume was around $127.9 billion at writing time, registering a significant 35.77% drop from yesterday.
Trading volume chart in the last 24 hours. Source: CoinMarketCap
The data shows that Bitcoin and Ether have faced over 40% market activity decrease compared to the trading volume registered 24 hours ago. Similarly, some of the largest memecoins showed a slowdown in performance.
As the list below shows, Dogecoin (DOGE) registered a 5.9% price drop on the last day. Likewise, Shiba Inu’s (SHIB) price decreased by 5.8% in the same timeframe.
Price performance of the top ten cryptocurrencies in the last 24 hours. Source: CoinGecko
On the contrary, Solana (SOL) performed better on the last day than the top ten cryptocurrencies, registering a 4.1% price surge. SOL’s $134 price places it alongside DOGE as the best-performing cryptocurrencies among the top ten in the last seven.
Among the largest gainers on the last day, PEPE reversed yesterday’s 12% price drop after registering a 10.9% growth during the past 24 hours. Similarly, the dog-themed memecoins dogwifhat (WIF) and (BONK) registered a price increase of 20,66% and 6.65%, respectively.
Some analysts expect a significant halving-related drop in Bitcoin’s price. Meanwhile, the King of crypto has shown strong resistance above a massive support wall, as crypto analyst Ali Martinez suggests.
Over 1 million addresses are buying over 671,000 BTC within the $60,000 and $62,000 price range. Which, according to the analyst, highlights a strong investor confidence. This confidence could be a crucial support level and a cushion against a future price drop.
#Bitcoin holds above a massive support wall, with 1 million addresses buying over 671,000 $BTC within the price range of $60,334 to $62,155.
This accumulation zone highlights strong investor confidence and could serve as a crucial level of support for #BTC, potentially… pic.twitter.com/lmghohWR1U
— Ali (@ali_charts) March 1, 2024
At writing time, the flagship cryptocurrency trades at around $62,052.71, which only accounts for a 1% decrease from the day before. BTC has increased over 21.8% in the last week, and it’s only 10.34% lower than its all-time high (ATH) of $69,000 registered in November 2021.
Likewise, it’s worth noting that Ether (ETH) has been showing a robust performance in the past few days amid the volatile crypto market. Maintaining its price range in the past 24 hours, the ‘king of altcoins’ registered only a 1.8% price decrease from yesterday. ETH currently trades at $3,411.88, representing a notable 16.2% rise in the past week.
Bitcoin performance in the 1-day chart. Source: BTCUSDT on TradingView.com
Featured image from Unsplash.com, Chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
After a short period of diminished onchain network fees, the expense of sending bitcoin has begun climbing once more, hitting a midweek average of 73.3 satoshis per virtual byte (sats/vB) or $11.48 for each transaction. Currently, a backlog of 207 mempool blocks is pending, waiting to process about 134,000 unconfirmed transactions, a situation that has […]
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On-chain data shows Bitcoin currently has a thick supply wall between the $60,300 and $62,155 levels that may prevent the asset from falling lower.
As explained by analyst Ali in a new post on X, BTC has a major support wall just below it right now. In on-chain analysis, the strength of support and resistance levels is gauged through the amount of Bitcoin that the investors bought at them.
The chart below shows how the distribution of the investor cost basis has looked like for BTC across the price ranges near the current spot value:
The amount of Bitcoin that the holders bought at the various price ranges | Source: @ali_charts on X
Here, the size of the dot represents the number of tokens that the addresses bought between the corresponding price levels. From the graph, it’s apparent that the $60,300 to $62,100 range has a particularly high density of coins right now.
Most of the price levels in this range lie just below the current spot price of the cryptocurrency, meaning that the investors who bought here would be making some profit, albeit only a slight one.
Generally, when the price retests the cost basis of such investors who were in profit prior to the retest (meaning that the price has approached their cost basis from above), a buying reaction may be produced by these addresses.
This is because holders like these may have reason to believe that if they were able to get into profits before, they might be able to do so again in the near future, so they may just accumulate on this “dip.”
Such a reaction can naturally provide support to the cryptocurrency. The scale of this support, however, is naturally not anything significant if only a few investors bought at the level to begin with. Narrow ranges that are thick with addresses, on the other hand, might just prove to be a source of noticeable support.
In the aforementioned price range near the current spot price, one million addresses acquired a total of about 671,000 BTC. “This accumulation zone highlights strong investor confidence and could serve as a crucial level of support for BTC, potentially cushioning against further drops,” notes the analyst.
While the price ranges under the current price are heavy with coins, it’s visible in the chart that this isn’t the case for the ranges above. Just like how supply wallets below can be a source of support, they can instead act as resistance when above.
The fact that the supply walls above are quite thin suggests that there wouldn’t be too many investors waiting to quickly exit at their break-even, and thus, selling pressure due to them should be low.
That said, it doesn’t mean there isn’t any impedance at all. Bitcoin is approaching all-time highs at this point, meaning that the vast majority of the supply is in profit. At these levels, mass selling for harvesting these gains can be the main challenge preventing the run from continuing.
At present, Bitcoin is trading around the $62,000 level, meaning that it’s right on the edge of the major support wall.
Looks like the price of the coin has been sharply going up recently | Source: BTCUSD on TradingView
Featured image from Shutterstock.com, IntoTheBlock.com, chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
