Bitcoin has had a roller coaster journey, with its price dropping nearly 15% from its yearly high of around $31,000. However, the cryptocurrency is still up 60% year-to-date, holding above the technical support level of $25,000. Several factors could potentially ignite the next Bitcoin bull cycle.
The upcoming Bitcoin halving in April 2024 plays a crucial role in sparking the bull cycle. Historically, each of the previous three halvings (2012, 2016, 2020) have been followed by massive BTC price rallies and new all-time highs. Market analysts predict an accumulation zone until the halving, with Bitcoin potentially retesting its record high of $69,000 in the next 18-24 months.
Another booster for Bitcoin’s price rally could be BlackRock’s Bitcoin ETF application to the U.S. Securities and Exchange Commission (SEC). Considering the investment giant’s near-perfect ETF approval record with the SEC, a possible approval in March 2024 could further elevate Bitcoin’s bullish prospects post-halving.
In light of recent SEC crackdowns on crypto exchanges Binance and Coinbase, Bitcoin’s market dominance is rising as many top altcoins are considered “unregistered securities.” Capital is moving from altcoins to Bitcoin, as it is not deemed a “security” by the SEC. The steady flow of funds into Bitcoin is expected by some, like MicroStrategy’s Michael Saylor, to push BTC’s market cap to 80% of the total crypto market in the coming years.
Furthermore, technical analysis predicts a very bright future for Bitcoin. The cryptocurrency’s longer-timeframe charts are currently forming a bull flag pattern, which indicates an upside continuation in its overall recovery rally. A break above $35,500 could initiate a bull cycle, considering the bear market peaks in Bitcoin’s past.
In conclusion, several factors are likely to contribute to a new Bitcoin bull cycle in the coming months and years. Market participants should keep an eye on events such as the upcoming Bitcoin halving, SEC decisions on BlackRock’s Bitcoin ETF application, and technical factors that may propel prices upwards. As always, investors should consider their risk tolerance and conduct thorough research before making any investment decisions.
Source: Cointelegraph
