May 25, 2024
Bitcoin Price is $72,202, Path to $80K Insights
Bitcoin price today

Bitcoin Price is $72,202, Path to $80K Insights

Monday, April 8, 2024: Bitcoin Price trades at $72,202, commenced the second week of April with a surge past $70,000, signaling classic bull market behavior. Over the weekend, Bitcoin steadily climbed higher, capitalizing on its gains and edging closer to its all-time highs.

Anticipation for further upside was palpable in trading circles, particularly with the first Wall Street open looming. However, amidst the excitement, there was a sense of deja vu following several weeks of corrective moves.

BTC/USD 1-day chart. Source: TradingView

Bitcoin Volatility

Volatility remains a key factor, with Bitcoin’s next block subsidy halving just ten days away. Miners are preparing for the reward per block to decrease by 50%, leading to potential fluctuations in network fundamentals. Despite this, Bitcoin wasted no time attempting to recover lost ground, reaching $72,363 at the time of writing.

Spot buyers played a crucial role in driving BTC’s momentum, with financial commentator Tedtalksmacro noting their hunger for Bitcoin. According to data from Markets Pro and TradingView, Bitcoin was already up 2.5% on the day. Market observers emphasized the importance of sustained bullish momentum, with $70,000 contingent upon continued interest and increasing spot flows.

While some traders anticipated a retracement, others highlighted the potential for further highs. Analysts also noted two nearby gaps in CME Group’s Bitcoin futures market, which could influence price movements.

Bitcoin cumulative volume delta (CVD) data. Source: Ted

Macroeconomic Factors and Bitcoin Halving Preparations

As Bitcoin prepares for its halving, attention shifts to miner preparations. Mining costs are expected to double post-halving, potentially impacting smaller participants. However, revenue flows could be preserved thanks to innovations like Bitcoin Ordinals and increasing fees.

Bitcoin mining data. Source: Ki Young Ju

Bitcoin’s network fundamentals appear robust, with mining difficulty set to increase and the mining hash rate near all-time highs. Preparations for the halving have been underway, including efforts to increase mining output by Bitdeer Technologies, Bitcoin’s mining partner in the Kingdom of Bhutan.

Meanwhile, Bitcoin’s long-term holders (LTHs) have become increasingly active sellers at current prices. However, this is considered normal market behavior, with LTH entities historically shedding a portion of their BTC supply during bull markets. The market has previously absorbed this sell-side pressure while pushing prices higher.

Bitcoin network fundamentals overview (screenshot). Source: BTC.com

Market Analysis and Regulatory Environment

Market analysts are closely monitoring macroeconomic data, particularly inflation indicators and the Federal Reserve’s stance on interest rate cuts. While the U.S. remains cautious, Europe and the UK are considering rate cuts sooner.

Image by partystock on Freepik

Related posts

Bitcoin at $41,252 Faces ETF Impact and Metric Concerns

Christian Green

Bitcoin’s Current Price: $40,517.50, Amid Crypto Market Dynamics

Eva Moore

Bitcoin’s at $66,061, Nears $67K Post-Halving

Anna Garcia

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Please enter CoinGecko Free Api Key to get this plugin works.
Index