Bitcoin Bounces Back After Shakeout: Why Rally To $80k Could Be Underway
Bitcoin has experienced a flash crash in the last few hours. As of 19:55 UTC on April 12, Bitcoin was trading at $66,900, down by 1.59%. Trading volumes were rising, though, up 23% to $40 billion.
JUST IN: Over $855 million has been liquidated from the #Bitcoin and crypto market in the last day.
— Bitcoin Magazine (@BitcoinMagazine) April 12, 2024
Bitcoin Finds Footing After Dump
In what could be the final shakeout in 2024, Bitcoin plummeted from $70,000 to a low of $65,162 in three hours. But it quickly regained ground and climbed back up to nearly $67k. This rollercoaster ride could be the last shakeup before the highly anticipated halving rally.
Dump Giving 2020 Halving Period Vibes – History Repeating Itself?
This recent price movement is similar to 2020, when Bitcoin spent several months consolidating around $6k before crashing to $3k and then skyrocketing to $69k. Some analysts argue that this could be history repeating itself, and the current dip could mean only one thing: another giant bull rally is coming.
Institutional Demand Getting Stronger
Proponents of this stance highlight Bitcoin’s fundamentals, which have never been stronger than they are today. This time, institutional investors have gotten involved in the cryptocurrency ecosystem like never before. An excellent example is BlackRock, which has accumulated more than 200k Bitcoin in a few months.
NEW: World’s largest asset manager BlackRock now holds 270K #Bitcoin worth over $19 billion.
We are just getting started 🙌 pic.twitter.com/EHerD9g1pF
— Bitcoin Magazine (@BitcoinMagazine) April 12, 2024
Flood Of Asian Institutional Money Coming Soon
A lot of positive news is coming out of Asia that can send Bitcoin to new heights. South Korea recently elected a pro-crypto party, which has already confirmed plans to give investors access to US Bitcoin exchange-traded funds (ETFs). This single move alone has experts predicting an incoming flood of institutional investment from South Korea.
Rumors suggest that Hong Kong will launch its series of Bitcoin ETFs as soon as Monday. If true, analysts expect China’s capital flow into the BTC market will increase dramatically.
Everything Points To $100k+
All these factors combined make a pretty convincing case for why the best is yet to come when it comes to Bitcoin’s growth. Although today’s drop was an unwelcome sight for many traders and investors alike, it will likely not matter once the halving momentum kicks in in a few short months. At that point, analysts expect Bitcoin to rocket past $200,000 and keep climbing.
Volatility will always be a part of the cryptocurrency landscape, but analysts believe Bitcoin’s long-term trajectory is too determined to fail at this point. As the countdown to the 2024 halving continues, all eyes are on Bitcoin as it powers through the current flash crash and gears up to the halving in a week.
The Bitcoin flash crash could be the final shakeout ahead of a halving-triggered rally. The fundamentals are too strong for the selloff to become a full-blown bear market.
Bitcoin Makes V-Shaped Recovery After Dump: A Bullish Signal
Bitcoin is currently on a rebound after the price dumped from $70k to lows of $65k in a few hours. This could indicate that $65k is the bottom after a shakedown before the bull run begins.
If bulls can sustain post-crash momentum, the critical level to watch would be $71,140, now a fundamental resistance level for the week. If bulls can push Bitcoin through $71k before the halving, then prices as high as $80k could be hit soon.
However, if bulls lose momentum and the bullish reversal fails, two scenarios could play out this weekend. The first is a consolidation between $65k support and $69,578, a minor intra-day resistance.
On the other hand, if bears take control with high volumes, and the $65k support fails, then the crash could continue, and Bitcoin could easily test prices below $60k before another rebound to new all-time highs.
Why This Could Be A Bullish Reversal To New All-Time Highs
Bitcoin may have crashed today, but it has no fundamental justification. This means, as happened around the halving period in the past, this could be a shakeout before the halving rally takes Bitcoin to new highs. Demand remains strong, especially on the institutional front. This demand could sustain a bullish reversal that ushers in another bull run.
Kamal Masri
Kamal is an experienced financial analyst with a demonstrated history of working in the Financial Market. Skilled in Equities, Capital Markets, Portfolio Management, Risk management, and Corporate Finance. Kamal has worked at some of the leading online finance publications providing his expert knowledge on cryptocurrency. Kamal has written widely on digital assets across the stock and crypto media space and beyond, including for Coindesk, Ethereum World News and The FinTech Times.
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