Bitcoin Price: Is BTC Breaking Out Into The 2024 Pre-Halving Rally?
Bitcoin price showed strong momentum on Thursday, rising to $45,000 after rebounding from below $43,000. This upward trend is aligned with the increasing demand for Bitcoin ETFs, which have been experiencing inflows for several consecutive days.
According to SoSoValue, the total net inflow of Bitcoin spot ETFs on Wednesday reached $146 million, offsetting Grayscale’s net outflow of $80.78 million.
Experts attribute the recent uptick in Bitcoin’s price to both increased ETF activities and the upcoming Bitcoin halving.
Bitcoin Price Eyes $46,000 – Next Important Level
The 4.6% increase in BTC’s price signals the return of bullish sentiment after the sell-off following the approval of ETFs. Although there were mixed sentiments in the market when the price dropped below $39,000, some analysts believe that this correction was healthy and similar to previous pre-halving price behavior.
Rekt Capital, a trader and analyst, suggests that Bitcoin has entered its “Pre-Halving Downside” phase and is expected to transition into a “Pre-Halving Rally” phase. This rally could potentially push BTC above $50,000.
An Exciting Time For Bitcoin
The transition period before the halving is often an exciting time for both Bitcoin and investors. It provides an opportunity for investors to accumulate more before the pre-halving rally begins.
Muhammad Azhar, an analyst, supports Rekt Capital’s insight and emphasizes the unique nature of Bitcoin’s supply and demand during this critical milestone.
Next Targets: $46,000 and Beyond
Now that Bitcoin has successfully surpassed the resistance at $45,000, the next important level to watch is $46,000. Reaching this level could trigger FOMO and potentially push the price towards $48,000. However, there may still be some dips before another upward movement.
The formation of an inverse head and shoulders pattern on the four-hour chart suggests a bullish breakout. Traders who entered long positions above the pattern’s neckline resistance at $43,616 are currently in profit and may choose to ride the trend to $46,000 before selling.
Based on the Money Flow Index (MFI), which indicates inflow and outflow volume, there are massive inflows supporting the short-term bullish case. The MFI’s rise into the overbought region suggests a likely bullish outcome, with a target of $48,640 based on the inverse H&S pattern.
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