Bitcoin price forecast: The largest cryptocurrency continues to accelerate its pre-halving rally, majestically stepping above the $72,000 mark. This unexpected rally comes amid positive market sentiment due to the immense attention Bitcoin ETFs have been getting since their launch in January.

Considering the remarkable growth since the ETFs went live in the US, it may be safe to plan for a potential correction before the halving. While a pullback is not guaranteed, being ready for all eventualities would raise a wedge between investors who succeed in the bull market and those who may end up not capitalizing on the chances they get.

Bitcoin Price Forecast: When And Where Is The Pre-Halving Retracement?

Bitcoin teeters at $72,000 for the first time after entering price discovery mode with last week’s performance. It is up a modest 3% in the last 24 hours on top of a 15% increase in a week and a staggering 54% in a month.

Traders would be on the watch for several candle closes above the $72,000 level to validate the continuation of the trend eyeing $80,000. On the downside, a higher support is anticipated at $70,000 which was last week’s pivotal level.

Based on the four-hour chart, bulls are fully behind Bitcoin’s north-facing trajectory. The SuperTrend indicator recently flipped to trail the price, underpinning the demand and attention BTC is receiving from institutional and retail investors.

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Bitcoin price forecast chart | Tradingview

Key moving averages like the 20-day Exponential Moving Average (EMA), the 50-day EMA, and the 200-day EMA (the blue, red, and purple lines on the chart) all support the bullish theory.

The Relative Strength Index (RSI) at 70 reveals that Bitcoin is slightly overbought. This calls for caution among investors while planning accordingly to buy the dips whenever they arise.

For instance, last week Bitcoin price tumbled below $60,000 after hitting a new all-time high. An immediate trend reversal accentuated by investors’ dollar cost averaging, blasted BTC back on the trajectory above $70,000.

If BTC fails to successfully test the new all-time high sell-wall at $72,000, participants may be encouraged to take profits, thus increasing the selling pressure and pushing the prices lower below $70,000.

Where Is Bitcoin Heading To As Greed Accelerates

The crypto Fear & Greed Index, a tool for measuring market sentiment, is currently at 82 suggesting extreme greed. Market psychology has over the years proved that people buy more (greed) while prices soar. Think of it as the fear of missing out (FOMO).

Crypto Fear & Greed Index

When investors are too greedy, it is often a sign that the market is due for a correction. Moreover, it is generally expected that Bitcoin goes through a pre-halving retrace as people sell the news.

The biggest challenge for investors is knowing when and where the pre-halving retracement will occur and if it will happen at all.

With short-term indicators strongly backing the rally, a significant retrace could be invalidated, bolstered by the growing demand among the ETFs. BlackRock’s IBIT ETF stands out with the highest weekly and monthly inflows, surpassing Grayscale’s GBTC. Cumulatively, ETFs have attracted a total net inflow of $9.6 billion with a total value traded of $7.7 billion, data by SoSoValue shows.

Digital asset investment products saw record weekly inflows totalling US$2.7bn, bringing total inflow year-to-date to US$10.3bn. Weekly trading turnover reached US$43bn for the week, smashing last week’s record US$30bn. BlackRock Bitcoin ETF’s weekly and monthly inflows have… pic.twitter.com/KitHvBGVEy

— Wu Blockchain (@WuBlockchain) March 11, 2024

The ballooning demand for Bitcoin from ETFs implies that more coins are being bought daily than the total amount of BTC being mined. This is the factor that could throw any chances of a correction out the window, as demand significantly surpasses supply, thus propping the asset for a progressive rally.

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Filed under: News - @ January 1, 1970 12:00 am