Bitcoin Breaks ATH, Makes $60K New Support: What is Next?

The cryptocurrency bull run 2024 has been officially green flagged with the Bitcoin breaking price mark of $50,000 and making a new all-time high (ATH) of $69,170 within a month. The spike in Bitcoin price was much anticipated after the approval of spot ETF and the massive inflows it is recording. 

Let’s break down how it broke the all-time high and why Bitcoin crashed to $60,000 right after. We will also discuss the next step for Bitcoin as it ultimately aims for the $100,000 price mark.

Bitcoin ATH

The previous Bitcoin ATH of $68,800 was just $200 away from a magical and very exciting number. On March 5, Bitcoin broke an all-time high and set a new record of $69,200 with a straight-up rally from $61,000 to the target. Although it fumbled for a few hours, it finally hit the ATH and is now preparing for the price discovery.

What happened At Bitcoin ATH?

While approaching the most bullish stance, Bitcoin failed to sustain the price pump, facing a solid bearish sentiment after a few sharp red candles. It even low-stretched near to $59,000 which caused liquidation in millions of dollars. However, the recovery was also at the same speed; it instantly reclaimed above $65,000 and possibly created more vital support.

Bitcoin ATH – BitcoinWisdom

The volatility at this stage was expected as investors had been locking up funds in Bitcoin for the past few months while targeting this very moment. This capital inflow was stated to rise after BlackRock filed for a spot Bitcoin ETF application in June 2023. It was further fueled after the anticipation around ETF approval and its potential impacts on Bitcoin price. 

The investors who bought Bitcoin during and post-ETF announcement were expected to take profits at this stage. Ethically, the Bitcoin crash should have fumbled way down, but the continued positive inflows from ETFs have balanced the overall outflows. Once the market digests this price movement, the new highs are ready to be broken and investors have already started preparing for upcoming moves. 

Is $60k New Support?

A sudden crash of ~10% occurred after the Bitcoin ATH breaking threw away millions of long positions and liquidated millions of dollars. Now, every trading strategy and indicator shows strong support at $60,000, and liquidity around this spot has been placed right after the massive red candle. 

Factors Leading Bitcoin Price

The current uptrend in Bitcoin price is pushed by several living factors such as massive ETF inflows, upcoming halving, emergence of new investors and all combing to the conclusion of BTC supply shortage. Let’s elaborate on it further down below;

ETF Inflows

The anticipation around spot Bitcoin ETF approval attracted massive capital in the Bitcoin which led Bitcoin near previous ATH. After approval, the massive inflows coming into Bitcoin through ETFs push its price further higher. 

The ETFs of 10 asset managers – including BlackRock (IBIT), Grayscale (GBTC), Fidelity (FBTC), and others – have managed to accumulate over $53 billion of BTC, according to data provided by SoSoValue. 

Spot Bitcoin ETF inflows – SoSoValue 

All the ETFs are currently attracting an average daily net inflow of $332 million. The amount could improvise once the selling of GBTC holding rests. These inflows also fill the selling bids which usually occur following massive volatility in BTC price as it breaks ATH. 

ETFs are still at an early stage of trading, and expected to attract a wide range of investors from the traditional finance sector. In the previous bull run, traditional finance players did not have direct access to Bitcoin, but this time, they can buy or sell it at market price without any convenience, thanks to ETFs!!  

Upcoming Halving

With the upcoming Bitcoin halving barely a month away, it has already started showing supply shortage hints. Last week, a piece of news buzzed into the crypto community that most of the cryptocurrency OTC platforms are running out of Bitcoin to sell. This indicates that the demand for Bitcoin has increased in the market while its supply increase is cutting down in half. 

The next and fourth Bitcoin halving is expected to occur in April this year and will have a tremendous impact on BTC market supply. 

The halving will slash Bitcoin block rewards from 6.25 to 3.125 BTC. It means that Bitcoin miners will be only provided with 3.125 BTC as mining rewards. This will lower the rate of new Bitcoin entering into the circulating supply. 

While the ETF and increased interest of investors have already spiked demand, the decrease in Bitcoin supply rate will play a crucial role in pushing its price upward.

What’s Next For Bitcoin?

After breaking the all-time high, Bitcoin is currently consolidating above $65,000 with a slightly high volatility. Bitcoin price is now trying to re-approach the high, similar to every cycle in order to unlock price discovery. 

Several analysts have predicted that Bitcoin could reach $100,000 in 2024 and this bullish momentum will last until the end of 2025. The price mark of $70,000 is currently seen as the final phase of the upcoming price outbreak. 

Final Words

Bitcoin is currently going through the most bullish market sentiment. The ETF buzz, anticipation around halving, and the increased interest of investors are pushing it to new highs alongside other crypto assets. Considering this a kickstart, waves of new investors are coming to the crypto industry which will give a massive boost to activities on crypto exchanges, and blockchain networks.