Bitcoin continues to upset the nerves of investors, with a new downward jolt which recently caused it to fall back to $60,000. A severe purge which made some doubt the sustainability of the recent bullish rally. But in a rebound as sharp as the previous fall, the main crypto has already risen to around $66,000 at the time of writing these lines.
Bitcoin, bullish signals pass the test of violent fluctuations
Despite the recent convulsions which saw Bitcoin briefly fall back to $60,000, before already rebounding almost 10% to retrace the current $66,000, most of the main technical and fundamental markers continue to support the thesis of a lasting upward trend:
- On the one hand, the risk appetite of new individual Bitcoin investors remains largely moderate according to CryptoQuant, with only 48% of purchase flows coming from these recent arrivals. A fever level far removed from the 84% to 92% typical of past terminal bullish peaks.
- On the other hand, the analysis company’s profit/loss index also remains outside the extreme overbought territories that preceded the final highs in previous cycles.
- Finally, and this is perhaps the most telling signal: despite the violent rebound in recent months, Bitcoin’s overall valuation measures still remain well below the record highs reached in 2013, 2017 and 2021 during past explosions.
The inevitable major event of 2024
But beyond these favorable indicators, an even more massive fundamental factor could well be the main detonator of the future price surge for Bitcoin. This is the next “halving”, this unique halving of the rate of issuance of new bitcoins, scheduled to take place on April 20, 2024, in just one month!
Each time, the planned depletion of emissions in the Bitcoin code was the main catalyst for a new stratospheric surge in prices to mark a new bullish cycle of unprecedented magnitude. And for 2024, with an economic context increasingly polluted by inflationary excesses, many analysts are predicting a new handover to ever more dizzying heights.
With its recent low at $60,000, followed by an express rebound to $66,000, Bitcoin has just reminded us once again how incredibly volatile volatility can be in crypto markets. However, despite these violent upheavals, the main technical and fundamental markers persist in painting a resolutely bullish background picture.
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