The Shiba Inu ecosystem is buzzing with renewed excitement as whale activities are rising and daily transactions are surging to new levels. Amid SHIB’s price stagnation over the past few years, these developments could propel the cryptocurrency’s value to new highs. 

Shiba Inu Whale Activity On The Rise

Popular doggy-themed cryptocurrency SHIB has recently experienced a massive rise in whale inflows. According to data released by crypto market intelligence platform IntoTheBlock, Shiba Inu experienced a surge of 2,595% in large holder inflows.

The cryptocurrency witnessed a substantial surge between Wednesday, February 7, and Friday, February 9, resulting in an impressive spike in inflows from 275.2 billion SHIB to a staggering 2.31 trillion SHIB.

Additionally, around Thursday, February 8, and February 9, the Shiba Inu cryptocurrency witnessed another surge, as large holder inflows rose from 1.4 trillion SHIB to 2.31 trillion SHIB. 

These large gains have marked a notable shift in investor sentiment regarding SHIB, effectively capturing the attention of the broader cryptocurrency market. Lately, there has been an evident increase in whale activities within the Shiba Inu ecosystem. This has led market watchers and investors to closely monitor the token, seeking insights into factors driving these significant whale movements. 

Shiba Inu’s marketing lead and influencer, Lucie, has also projected a bullish outlook for the company. According to her post on X (formerly Twitter), Shiba Inu could be one of the major altcoins taking advantage of the 2024 bull run.

She explained that when the bull market phase starts and capital pours into prominent cryptocurrencies like Bitcoin and other major altcoins, the momentum will likely extend into Shibarium, potentially triggering a price surge for SHIB. 

SHIB Sets Course For Potential Price Surge

In addition to the rise in whale activities, SHIB has experienced a notable increase in daily transactions and new active users. Data from ShibariumScan reveals a surge in daily transactions from 526,090 on February 9 to 2.04 million on February 11. At the time of writing, daily transactions have dropped slightly, standing at 1.88 million. 

The surge in large investor purchases and daily transactions could indicate a possible spike in the price of Shiba Inu soon. Usually, a rise in transactional volume signifies an increase in investor interest and adoption of a cryptocurrency, which further contributes to increased demand and potentially impacts market sentiment. 

According to CoinMarketCap, the price of SHIB is currently at $0.0000095, reflecting an impressive 2.76% gain in the past 24 hours. Crypto previously struggled to keep up with the pace of bullish trends in the crypto market.

However, with recent positive developments fueling market sentiment, Shiba Inu may be poised to experience an exponential surge if it can break through key limitations and price resistance. 

Cover image from Dall-E, chart from Tradingview

Dogecoin (DOGE), the meme-driven cryptocurrency, remains confined within a narrow trading range of $0.075-$0.088 since the beginning of 2024, leaving investors grappling with its future trajectory. While activity has dwindled compared to early 2023, a significant portion of DOGE addresses remain profitable, fueling cautious optimism.

Profitable Addresses Offer Glimmer Of Hope

Approximately 60% of DOGE addresses, totaling roughly 1.34 million, currently hold their tokens at a profit, implying they bought at lower prices. This data, gathered by blockchain analytics firm IntoTheBlock, suggests underlying bullish sentiment despite declining market engagement.

Technical Support And Resistance Levels

Analysts highlight key support levels around $0.077-$0.079, where a large number of investors entered the market. This zone could act as a buying floor, preventing further price depreciation.

However, breaching this support could trigger a dip to $0.07, offering potential entry points for bargain-seeking investors. Conversely, overcoming the $0.088 resistance level could pave the way for a price climb towards $0.094.

Dwindling Activity Raises Concerns

A closer look at network activity paints a less rosy picture. Both transaction volume and whale activity, signifying large-scale investments, have decreased significantly, indicating reduced trading interest. This lack of enthusiasm could hamper Dogecoin’s upward momentum.

#Dogecoin is experiencing a decrease in transaction volume and whale transaction count, which typically indicates lower trading activity. This could be a sign that fewer people are buying, selling, or transferring #DOGE, possibly due to reduced interest or confidence in it! pic.twitter.com/SiKNxx4FhN

— Ali (@ali_charts) February 12, 2024 

Technical analysis reveals a stalemate between the 50-day Exponential Moving Average (EMA) acting as support and a falling trendline acting as resistance. This pattern signals a lack of clear direction in the near term. Flipping the trendline to support could be a positive indicator, but achieving that requires renewed buying pressure.

Valentine’s Day Prediction Offers Modest Hope

Crypto exchange Changelly offers a moderate prediction for Valentine’s Day, forecasting a 1.12% price increase to $0.082591. While this could bring temporary cheer to DOGE holders, it also underlines the currency’s sensitivity to market sentiment and overall volatility.

Dogecoin: Long-Term Concerns Linger

Meanwhile, Dogecoin’s recent fall from the top 10 cryptocurrency rankings raises concerns about its long-term viability. Unlike competitors offering real-world applications, DOGE primarily relies on celebrity endorsements and internet trends. This raises questions about its ability to compete in the rapidly evolving crypto landscape.

The future of Dogecoin remains uncertain. While a short-term price rise is possible, concerns about its utility and competitive edge compared to other projects persist. Investors should approach DOGE with caution and conduct thorough research before making any investment decisions. Remember, price predictions are merely educated guesses, and the cryptocurrency market remains inherently unpredictable.

Featured image from Pexels, chart from TradingView

Solana is gaining bullish momentum above $110. SOL price is surging, and the bulls could soon aim for a move above the $120 level.

SOL price started a fresh increase from the $95.00 support against the US Dollar.
The price is now trading above $105 and the 100 simple moving average (4 hours).
There is a key bullish trend line forming with support at $109.20 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
The pair could continue to rally if it clears the $115 and $118 resistance levels.

Solana Price Starts Fresh Rally

Solana price formed a base above the $94.00 support zone and recently started a fresh increase. There was a decent increase above the $98 and $100 levels.

The price is up nearly 10% and there was a move above the $110 level, outperforming Bitcoin and Ethereum. The bulls pushed the price close to $115. A high is formed near $114.98 and the price is showing no signs of upside exhaustion.

It is holding gains above the 23.6% Fib retracement level of the recent wave from the $103.38 swing low to the $114.98 high. Solana is now trading above $110 and the 100 simple moving average (4 hours).

There is also a key bullish trend line forming with support at $109.20 on the 4-hour chart of the SOL/USD pair. The trend line is near the 50% Fib retracement level of the recent wave from the $103.38 swing low to the $114.98 high.

Source: SOLUSD on TradingView.com

Immediate resistance is near the $115 level. The next major resistance is near the $118 level. A successful close above the $118 resistance could set the pace for another major increase. The next key resistance is near $125. Any more gains might send the price toward the $132 level.

Are Dips Supported in SOL?

If SOL fails to rally above the $115 resistance, it could start a downside correction. Initial support on the downside is near the $112.20 level.

The first major support is near the $109.20 level and the trend line, below which the price could test $105. If there is a close below the $105 support, the price could decline toward the $100 support in the near term.

Technical Indicators

4-Hours MACD – The MACD for SOL/USD is gaining pace in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.

Major Support Levels – $102.20, and $109.20.

Major Resistance Levels – $115, $118, and $125.

Ethereum price is up over 5% and there was a push toward $2,700. ETH is consolidating gains and might aim for a move toward $2,800 or $3,000.

Ethereum is consolidating gains below the $2,700 resistance zone.
The price is trading above $2,600 and the 100-hourly Simple Moving Average.
There was a break above a bullish flag pattern with resistance at $2,500 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a fresh increase if it stays above the $2,630 support zone.

Ethereum Price Starts Fresh Surge

Ethereum price remained stable above the $2,420 resistance. ETH formed a base and started a fresh increase above the $2,500 resistance, outperforming Bitcoin.

There was a break above a bullish flag pattern with resistance at $2,500 on the hourly chart of ETH/USD. The pair gained over 5% and there was a clear move above the $2,600 resistance. It even moved toward the $2,700 level. A high was formed near $2,681 and the price is now consolidating gains.

There was a minor decline below the $2,660 level. Ethereum is still trading above the 23.6% Fib retracement level of the recent rally from the $2,472 swing low to the $2,681 high. It is also trading above $2,620 and the 100-hourly Simple Moving Average.

If there is a fresh increase, the price could surge above the $2,660 level. On the upside, the first major resistance is near the $2,680 level. The next major resistance is near $2,720, above which the price might rise and test the $2,800 resistance.

Source: ETHUSD on TradingView.com

If the bulls remain in action, they could even push the price above the $2,800 resistance. In the stated case, the price could rise toward the $3,000 level.

Are Dips Limited In ETH?

If Ethereum fails to clear the $2,680 resistance, it could start a downside correction. Initial support on the downside is near the $2,630 level.

The next key support could be the $2,600 zone. A clear move below the $2,600 support might send the price toward $2,575 or the 50% Fib retracement level of the recent rally from the $2,472 swing low to the $2,681 high. The main support could be $2,520 or the 100 hourly SMA. Any more losses might send the price toward the $2,400 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $2,630

Major Resistance Level – $2,680

Bitcoin price extended its rally above the $48,800 resistance. BTC tested $50,000 and is currently showing signs of a downside correction.

Bitcoin price climbed higher above the $48,500 and $48,800 resistance levels.
The price is trading above $48,800 and the 100 hourly Simple moving average.
There is a short-term rising channel forming with support at $49,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a downside correction below the $49,750 and $49,500 levels.

Bitcoin Price Jumps 5%

Bitcoin price remained in a positive zone above the $48,000 resistance zone. BTC extended its rally and climbed above the $48,800 resistance zone. Finally, the price jumped above the $50,000 level.

A new multi-week high was formed near $50,339 and the price is now consolidating gains. There was a minor decline below the $50,000 level. The price is still above the 23.6% Fib retracement level of the recent rally from the $47,642 swing low to the $50,339 high.

Bitcoin price is now trading above $48,800 and the 100 hourly Simple moving average. There is also a short-term rising channel forming with support at $49,750 on the hourly chart of the BTC/USD pair.

Source: BTCUSD on TradingView.com

Immediate resistance is near the $50,250 level. The next key resistance could be $50,400, above which the price could start another decent increase. The next stop for the bulls may perhaps be $51,200. A clear move above the $51,200 resistance could send the price toward the $52,000 resistance. The next resistance could be near the $53,000 level.

Downside Correction In BTC?

If Bitcoin fails to rise above the $50,250 resistance zone, it could start a downside correction. Immediate support on the downside is near the $49,750 level or the channel trend line.

The first major support is $49,000 and the 50% Fib retracement level of the recent rally from the $47,642 swing low to the $50,339 high. If there is a close below $49,000, the price could gain bearish momentum. In the stated case, the price could dive toward the $47,650 support.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $49,750, followed by $49,000.

Major Resistance Levels – $50,250, $50,400, and $51,200.

Charles Hoskinson, co-founder of Cardano, joined Discovery Crypto to discuss his thoughts about the state of the crypto space, what current developments in the industry suggest, and the network’s future as the “Taylor Swift of Blockchains.”

Cardano’s Big Reputation

The recent interview sparked a discussion about Cardano’s relationship with crypto exchanges like Gemini and other figures in the crypto industry, as the interviewers suggested there appears to be a “coordinated effort to minimize Cardano’s impact.”

During this discussion, Charles Hoskinson noted that most players in the crypto space seem to “fear” Cardano for “doing everything right” since the beginning. Hoskinson listed factors like liquid staking and its growth without Venture Capital (VC) funding as crucial elements that make Cardano “pretty scary.”

When asked why stablecoins like USDC are not on the Cardano blockchain, it was highlighted that the reason is neither economical nor technical. Instead, the conversation indicates a seeming “lack of a strong desire to engage” with the blockchain and its projects.

Following the discussion, Hoskinson expressed his thoughts and concerns on asset-backed stablecoins, affirming that he doesn’t like them and they “are not crypto” despite 80-90% of the real money velocity and value transactions that happen on-chain being done through them.

The Cardano founder considers the highly centralized state of asset-backed stablecoins as a concerning matter, as they grant control over the crypto space to a few entities:

At the end of the day, they’re controlled by centralized entities, and the problem when you look at asset-backed stablecoins connect them to CEXs, centralized exchanges, they have gargantuan and enormous control and now we have a new actor, ETFs, and a huge amount of control over crypto. So, 10 companies now basically control the cryptocurrency space.

Hoskinson’s View Of The Crypto Industry’s Future

The current developments of the crypto space are also a matter of concern for Cardano’s founder, with the recent tendencies and developments leaning towards a “road opposite of the original mission for cryptocurrencies: financial freedom.

To Hoskinson, the crypto market is handing “soft power” to a handful of regulated entities that control the value and volume of the crypto industry instead of aiming to take down “banks and legacy financial systems.”

Cardano’s founder considers asset-backed stablecoins inevitable and highlighted that Cardano “is not looped into that, but eventually it will happen.”

However, he believed addressing his concerns was necessary as they weren’t “compatible with the long-term cryptocurrencies being decentralized” and would generally affect the industry.

To address this concern, Cardano’s team has extensively researched algorithmic stablecoins, as Hoskinson considers them a potential solution more suitable for the crypto industry.

Lastly, Cardano’s founder closed the interview by comparing American Singer Taylor Swift and the crypto industry, jokingly suggesting that compared to the 14th Grammy winner, nobody knows who Charles Hoskinson is.

However, the interviewer pointed out that, like Swift, Cardano could follow a similar trajectory and grow from a smaller and niche artist to a globally recognized and mainstream figure with a significant impact on the world. Hoskinson replied that he “would love to be the Taylor Swift of Blockchain.”

The crypto market is currently abuzz with discussions on Bitcoin (BTC), as it teeters on the brink of reaching the $50,000 threshold. This is fueled by the fast-approaching halving as well as a “bullish divergence” observed over the past week, with Bitcoin breaking past the $48,000 mark.

Analyst Analysis On Bitcoin

Michaël van de Poppe, a prominent figure in the realm of crypto analysis, recently shared insights on the bullish divergence. Van de Poppe pointed out the notable weekly candle that propelled Bitcoin’s value beyond $48,000, signaling a potential challenge at the $50,000 resistance level in the near term.

#Bitcoin looking at the resistance.

Massive weekly candle, through which Bitcoin is back above $48,000.

I’m personally interested what price will do around $50,000 in the upcoming 1-2 weeks. pic.twitter.com/6I927U20pg

— Michaël van de Poppe (@CryptoMichNL) February 12, 2024

Further echoing this challenge, IntoTheBlock highlighted a key obstacle Bitcoin faces on its path to $50,000 in the latest post. The firm identified a crucial resistance level, noting that over 800,000 addresses have purchased nearly 270,000 BTC at an average price of $48,491.

Currently, at a loss, these holders may exert selling pressure as Bitcoin approaches its break-even point, potentially impacting its ascent to the coveted $50,000 mark.

Bitcoin has set its sights on $50k!
To get there, there is one important resistance level left. Over 800k addresses acquired nearly 270k $BTC at an average price of $48,491. These addresses are currently in the red and might provide sell pressure as they break even on their… pic.twitter.com/nEw4tP8wUc

— IntoTheBlock (@intotheblock) February 12, 2024

Over the past week alone, Bitcoin’s value has increased by more than 10%, igniting discussions among crypto enthusiasts and experts regarding its future trajectory. This bullish momentum and the impending halving event reinforce optimistic stances within the crypto sphere about Bitcoin’s value proposition.

Bullish Outlook On BTC And Market Sentiment

Amid this bullish phase, several crypto analysts and market observers have put forward their forecasts regarding Bitcoin’s potential price movement shortly. Crypto Rover, another analyst with a significant following, suggested that surpassing the $48,500 resistance and reaching the 0.618 Fibonacci level could set Bitcoin on a path to the “official trend reversal to a bull market.”

Once #Bitcoin breaks the $48,500 mark, better said, the 0.618 Fibonacci level,

that will mark the official trend reversal to a bull market. I’m keeping a close eye on this level! pic.twitter.com/ne2SvugHRp

— Crypto Rover (@rovercrc) February 10, 2024

Furthermore, data from IntoTheBlock indicates a positive trend regarding Bitcoin address profitability. Currently, 91% of Bitcoin addresses are profitable, with the total number of addresses in profit at 46.87 million, accounting for 90.53% of all addresses.

This is contrasted with 3.44 million addresses that are still at a loss. IntoTheBlock’s analysis also reveals that most addresses that purchased BTC within the $40,919.92 to $55,413.77 range are now profitable, underscoring a bullish sentiment among Bitcoin holders.

Featured image from Unsplash, Chart from TradingView

The founder of on-chain analytics firm CryptoQuant has said Bitcoin could reach a target of $112,000 this year driven by the ETF inflows.

Bitcoin May Hit $112,000 Based On Inflows Into The ETFs

In a new post on X, CryptoQuant CEO and founder Ki Young Ju talked about the outlook of the cryptocurrency based on the inflows going towards the spot exchange-traded funds (ETFs).

The analyst has used the “Realized Cap” indicator to find price targets for the coin. The Realized Cap refers to a capitalization model for Bitcoin that calculates the total valuation of the asset by assuming that the real value of any coin in circulation is the price at which it was last transacted on the blockchain.

If the previous transaction of any token is assumed to have involved a change of hands for it (that is, buying and selling took place), then the last transfer price would correspond to the cost basis of the coin.

As the Realized Cap essentially adds up the cost basis of all the investors, one way to look at the metric is as a measure of the total amount of investment the holders have put into the coin.

Naturally, the Realized Cap pushes up as trades occur at a higher spot price. Something that could be particularly influential for the Realized Cap this cycle may be the spot ETF inflows.

The spot ETFs, which finally got approval from the US Securities and Exchange Commission (SEC) last month, have been buying up Bitcoin at relatively high prices to add to their holdings, thus elevating the Realized Cap.

The chart below shows the data for the holdings of the spot ETFs and the Bitcoin Realized Cap.

“Bitcoin market has seen $9.5B in spot ETF inflows per month, potentially boosting the realized cap by $114B yearly,” explains Ju. “Even with $GBTC outflows, a $76B rise could elevate the realized cap from $451B to $527-565B.”

The Market Value to Realized Value (MVRV) ratio may provide some hints regarding how the Realized Cap could be relevant for the spot price. This indicator tracks the BTC Market Cap and the Realized Cap ratio.

“Historically, BTC market bottoms occur at an MVRV of 0.75 and tops at 3.9,” notes the CryptoQuant founder. Based on this fact, the table below shows that ceiling and floor prices can be defined for the asset.

As the spot ETF inflows continue to come in, the Realized Cap will only push further up, and the potential ceiling of the cryptocurrency will also thus increase.

“With current spot ETF inflow trends, the top price could reach $104k-$112k,” says the CryptoQuant CEO. “Without hype, maintaining the current level of 2.07, the price would be $55-59k.”

In the best-case scenario, if Bitcoin had reached the $112,000 target, the cryptocurrency would have jumped more than 126% from the current spot price.

BTC Price

At the time of writing, Bitcoin is trading at around $49,400, up over 15% in the past week.

In Grayscale’s latest report, “2024 Halving: This Time It’s Actually Different,” Michael Zhao, provides an in-depth analysis of the evolving dynamics within the Bitcoin ecosystem as the next halving event approaches in mid-April 2024. The report argues for a significant departure from previous cycles, underlined by the advent of spot Bitcoin ETFs in the United States, evolving investment flows, and innovative use cases emerging within the Bitcoin network.

The Essence Of Bitcoin Halvings

Halvings, designed to halve the reward for mining Bitcoin transactions every four years, are pivotal in maintaining Bitcoin’s scarcity and disinflationary profile. Zhao articulates, “This disinflationary characteristic stands as a fundamental appeal for many Bitcoin holders,” emphasizing the stark contrast with the unpredictable supplies of fiat currencies and precious metals.

Despite historical price surges post-halving, Zhao cautions against assuming such outcomes as guarantees, stating, “Given the highly anticipated nature of these events, if a price surge were a certainty, rational investors would likely buy in advance, driving up the price before the halving occurs.”

Distinguishing Factors Of The 2024 Halving

Macroeconomic Factors

According to Zhao, macroeconomic factors have differed in each cycle, however, always propelling the BTC price to new heights. The researcher describes the European debt crisis in 2012 as a significant catalyst for Bitcoin’s rise from $12 to $1,100, highlighting its potential as an alternative store of value amidst economic turmoil,

“Similarly, the Initial Coin Offering boom in 2016—which funneled over $5.6 billion into altcoins—indirectly benefited Bitcoin as well, pushing its price from $650 to $20k by December 2017. Most notably, during the 2020 COVID-19 pandemic, expansive stimulus measures […] [drove] investors towards Bitcoin as a hedge, which saw its price escalate from $8,600 to $68k by November 2021,” Zhao states.

Thus, Zhao suggests that while the halvings contribute to Bitcoin’s scarcity narrative, the broader economic context is also always critically impacting Bitcoin’s price.

Miners’ Strategic Adjustments

Anticipating the next BTC halving in April, miners have proactively adjusted their strategies to counterbalance the impending reduction in block reward income amidst escalating mining difficulties. Zhao observes a strategic move among miners, noting, “There was a noticeable trend of miners selling their Bitcoin holdings onchain in Q4 2023, presumably building liquidity ahead of the reduction in block rewards.

This foresight suggests miners are not merely reacting but are actively preparing to navigate the challenges ahead, ensuring the network’s resilience. “These measures collectively suggest that Bitcoin miners are well-positioned to navigate the upcoming challenges, at least in the short term,” the Grayscale researcher argues.

The Emergence Of Ordinals And Layer 2 Solutions

The introduction of Ordinal Inscriptions and the exploration of Layer 2 solutions have introduced new dimensions to Bitcoin’s functionality and scalability. Zhao emphasizes the significance of these innovations, stating, “Digital collectibles…have been inscribed, generating more than $200 million in transaction fees for miners.” This development has not only augmented Bitcoin’s utility but also provided miners with new avenues for revenue generation.

Furthermore, Zhao highlights the potential of Layer 2 solutions to address Bitcoin’s scalability challenges, pointing out, “The growing interest in Taproot-enabled wallets…indicates a collective move toward addressing these challenges.” This reflects a concerted effort within the Bitcoin community to enhance the network’s capabilities and accommodate a broader range of applications.

The Role Of ETF Flows

The approval and subsequent introduction of spot Bitcoin ETFs have significantly influenced Bitcoin’s market structure, facilitating wider access for investors and potentially mitigating sell pressure from mining rewards. Zhao articulates the impact of ETF flows, asserting, “Following US spot Bitcoin ETF approvals, the initial net flows…amounted to approximately $1.5 billion in just the first 15 trading days.”

This suggests that ETFs could play a crucial role in balancing the market dynamics post-halving by absorbing a significant portion of the typical sell pressure post-Halving. “In order to maintain current prices, a corresponding buy pressure of $14 billion annually is needed. Post-halving, these requirements will decrease by half: […] that equates to a decrease to $7 billion annually, effectively easing the sell pressure.”

A Promising Outlook for Bitcoin

According to Grayscale’s analysis, the next Bitcoin halving will be different for a number of reasons. Overall, the outlook is highly bullish:

Bitcoin has not only weathered the storm of the bear market but has also emerged stronger, challenging outdated perceptions with its evolution in the past year. While it has long been heralded as digital gold, recent developments suggest that Bitcoin is evolving into something even more significant.

At press time, BTC traded at $49,708.

One analyst is confident that Bitcoin (BTC) will be more resilient than ever in future crashes. Taking to X, the analyst said that the world’s most valuable coin will not fall below $100,000 in the next crypto winter.

Bitcoin Will Be More Resilient In The Future

This optimistic outlook hinges on a key factor: the recent approval of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC). This product, the analyst said, represents a significant shift, introducing a “permanent institutional bid” for Bitcoin.

With Wall Street now open to diversifying into Bitcoin, aiming to ride the trend, the stream of institutional demand would make the coin more robust even if prices overheat in the future.

The analyst argues that this “permanent” demand is a powerful buffer against price drops. While future bear markets are inevitable, the presence of institutional buyers will reduce the severity and duration of these downturns.

Accordingly, the analyst expects future corrections to be relatively shallow and recoveries stronger and quicker. BTC’s losses were more profound in the past, and recoveries were weaker due to low liquidity.

This prediction is when Bitcoin is trending higher, looking at the performance in the daily chart. So far, the coin is at around January 2024 highs and will likely extend gains. Looking at the candlestick arrangement, the immediate psychological resistance is $50,000.

If bulls anchor on the recent leg up, BTC prices may breach this reaction point, initiating a run that may see BTC float to November 2021 highs 2021.

Will BTC Breach $70,000 In 2024?

Though the analyst is bullish, it is not immediately clear if Bitcoin would even have the momentum to breach $70,000 and rally to new territory above $100,000. Even so, more analysts and investors, including Arthur Hayes, the co-founder of BitMEX, remain bullish.

Related Reading: Crypto Drama Unfolds: Ethereum Co-Founder’s 22,000 ETH Transfer Sparks Price Speculation

According to Hayes, monetary policy decisions made by the United States Federal Reserve (Fed) will shape and determine the market liquidity level and, thus, the speed of the BTC uptrend. The Fed is expected to slash its interest rate from the current 5.50% level to a new level in March. 

If the central bank continues to tighten, defying economists’ forecasts and mopping up liquidity from the market, Bitcoin might suffer as it did in 2022. However, with Wall Street involved and more capital flowing to Bitcoin, future corrections, even if prices are still below all-time highs, might not be as brutal as before.