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Bitcoin Price Forecast: Can BTC’s $665 Billion Cap Propel the Next Halving Event?
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Despite a recent price dip, Bitcoin's bullish trend persists, emphasizing the importance of mining strategies and halving effects.
Key Insights
- Global cryptocurrency market cap drops 1.30% in the last day to stand at $1.3 trillion.
- Yearly market perspective reveals a robust growth of 27.15%.
- Stablecoins capture a notable $124 billion market cap, 9.52% of total crypto.
- Bitcoin’s market cap is $665 billion, marking 52.90% dominance in crypto.
- BTC’s position in the market is poised for growth, especially with a potential ETF.
Quick Fundamental Outlook
The global cryptocurrency market cap has slightly adjusted to stand at $1.3 trillion today, marking a decline of 1.30% within the last 24 hours. However, when zooming out to an annual perspective, the market exhibits a robust growth of 27.15%.
Furthermore, it’s worth noting the substantial market cap of Stablecoins, which stands at $124 Billion, securing a 9.52% chunk of the total cryptocurrency market cap.
Bitcoin Market Cap
Bitcoin (BTC) currently encapsulates a market cap of $665 billion, cementing its dominance at 52.90% of the total crypto market. This dominance is a testament to Bitcoin’s continued significance and stature in the crypto realm.
This dominance is a testament to Bitcoin’s continued significance and stature in the crypto realm.
This growing market capitalization, along with Bitcoin’s dominance, indicates the potential for further expansion and solidification of BTC’s position in the market, particularly if the anticipated ETF is approved.
Crypto Fear & Greed Index
The emotional barometer of the crypto market, known as the Crypto Fear & Greed Index, currently reads a score of 70, indicating a “Greed” sentiment. This sentiment is slightly tempered by yesterday’s reading of 71. However, the market’s mood has seen fluctuations over time.
A week ago, the sentiment was more balanced, standing at a “Neutral” 53. Rewinding further to a month ago, the crypto environment was characterized by a cautious “Fear” sentiment with a score of 44.
Bitcoin Fundamental Outlook
In 2023, Bitcoin experienced a notable ascent, escalating over 110% from its January start at $16,677 to surpassing $35,000 within ten months. This growth is attributed to heightened market anticipation around the possible SEC endorsement of a Bitcoin ETF and the imminent halving event in April 2024.
This upcoming event will mark Bitcoin’s fourth halving, slashing the block reward from 6.25 to 3.125 BTC.
Given the asset’s historical trend, where its value has typically surged around prior halving events in 2012, 2016, and 2020, the market is optimistic about its trajectory leading up to and post the 2024 halving.
Bitcoin Price Prediction
In today’s trading landscape, Bitcoin (BTC/USD) currently stands at $34,024.78, marking a 2.00% decrease over the past 24 hours. Despite this dip, it remains the leading asset on CoinMarketCap, with a robust market cap of $664.33 billion. The 4-hour chart reveals a pivotal point at $33,951, with immediate resistance anticipated at $35,225.
Should the bullish momentum continue, we could see further resistance at $36,101 and subsequently at $36,977. On the downside, support levels are earmarked at $33,144, followed by $32,442 and $31,826.
Technical indicators offer further insights. The Relative Strength Index (RSI) currently sits at 50, signalling a neutral sentiment. Meanwhile, the price slightly hovers above the 50-day Exponential Moving Average (EMA50) of $33,430, hinting at a possible short-term bullish trend.
Chart patterns, especially the series of Doji candles above the 23.6% Fibonacci retracement level, suggest indecision among traders. A deeper look suggests immediate support around the 38.2% Fibo mark of $33,100.
In conclusion, the current trend for Bitcoin remains bullish as long as it trades above $33,850. Traders should remain vigilant for potential shifts in market dynamics.
About the Author
Arslan Aliauthor
Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.
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