Key Points
- Bitcoin’s price briefly touched $67,200 before stabilizing around $66,200, following a bullish trend.
- Bitfinex analysts forecast continued growth due to a supply squeeze after the recent halving event.
Bitcoin’s Price Surge
Bitcoin (BTC) price continued its upward trend on Tuesday, briefly hitting $67,200 in the past 24 hours before stabilizing around $66,200. This followed a bullish Doji candlestick close last week, post the halving frenzy.
The expected crypto volatility was mirrored in most altcoins, including Ripple Labs-backed XRP and Near Protocol (NEAR).
Bitcoin Demand Outstrips Supply
A significant decrease in Bitcoin supply on centralized exchanges was observed months before the recent halving event, a first in Bitcoin’s history. Despite the halving of their block rewards, Bitcoin miners have maintained their supply.
The recent approval of spot Bitcoin ETFs in Hong Kong is expected to increase demand, along with US-based spot BTC ETF issuers. Moreover, institutional investors are looking to add Bitcoin to their balance sheets and investment portfolios as a hedge against inflation.
Post-Halving Developments
A Bitfinex market report suggests that a Bitcoin supply squeeze has started following the recent halving event. The report notes a predicted decline in Bitcoin’s selling pressures, including from miners and other crypto traders, to nearly $30 million soon.
Despite a recent drop, the daily average spot Bitcoin cash inflows of about $150 million could result in a significant supply vs demand shock. On-chain data indicates that Bitcoin exchanges outflows have surged to levels seen early last year, as investors anticipate further gains.
Bitcoin’s Price Predictions
Bitcoin’s price has been fluctuating between $74k and $60k over the past two months. Crypto analyst Michaël van de Poppe suggests that the coin could continue to range in the coming months, potentially leading to a long-awaited altseason.
Bitcoin’s monthly Relative Strength Index (RSI) is currently retesting the bullish breakout on the 70 level. This indicates a strong similarity between the current bull cycle and the notorious crypto bubble of 2016-2017.
