Bitcoin (BTC) is currently trading at $66,413.62, a 3.78% drop in the last 24 hours. With a market capitalization of $1.3 Trillion, it ranks as the largest cryptocurrency by market cap. The 24-hour trading volume for BTC stands at over $54 Billion as of writing, which is the second-highest amongst other Cryptos.
BTC Data Chart (Source: CoinMarketCap)
The volume-to-market cap ratio for the past 24 hours is 4.19%, indicating a relatively high trading activity, while its circulating supply is at over 19 Million BTC, which is 93.60% of the total supply of 19,656,556 BTC.
BTC 1- Day Technical Analysis
Bitcoin has recorded three consecutive daily red candles, closing below the previous day’s close. On the daily timeframe, BTC opened at a price of $65,254.22, recording a high of $66,743.59 and a low of $64,505.00.
BTCUSD 1-Day Price Chart (Source: TradingView)
The cryptocurrency finds itself at the support level of around $65,600. Should a potential downward break occur today or in the near future, it could test the next support level at the $59,298 zone or the ascending trendline. Resistance is seen at BTC’s all-time high of $73,835.57, which was recorded on March 13th.
Pullback Concerns Ahead of Halving
Despite Bitcoin’s strong performance and new all-time highs in 2024, some analysts warn of a potential correction in the weeks leading up to the halving event expected in April. This aligns with historical patterns that have seen significant pullbacks before previous halvings.
A BTC analyst anticipates the possibility of a retracement lasting up to 77 days, though the drawdown might be smaller than in previous cycles. Notably, the 2020 pre-halving correction was at around 20%, while the 2016 retracement before the halving reached 40%.
In 3 days, Bitcoin will officially enter the “Danger Zone” (orange) where historical Pre-Halving Retraces have begun
Historically, Bitcoin has performed Pre-Halving Retraces 14-28 days before the Halving
In 2020, this retrace was -20% deep
In 2016, this retrace was -40%… pic.twitter.com/t0EHA6bpWY
— Rekt Capital (@rektcapital) March 16, 2024
This “danger zone” period, as termed by the analyst, is considered the riskiest part of the pre-halving phase. However, the current cycle differs as Bitcoin set a new record high for the first time before the halving, unlike previous cycles.
Regulatory Concerns and Institutional Adoption
Regulatory scrutiny surrounding cryptocurrencies, particularly those besides Bitcoin, has intensified. U.S. Senators Jack Reed and Laphonza Butler recently penned a letter to the Securities and Exchange Commission (SEC), advocating for the agency to refrain from approving additional crypto exchange-traded products (ETPs) tied to digital assets other than Bitcoin.
Their apprehension stems from the perceived lack of adequate trading volumes and integrity in cryptocurrencies like Ethereum, which could potentially expose retail investors to risks of fraud and market manipulation.
🗞️ Crypto News
Two US senators have called on the Securities and Exchange Commission (SEC) to halt the approval of any further crypto exchange-traded funds (ETFs), citing risks to retail investors.
🔗 https://t.co/fNNUGbCs64#CryptoNews
— CoinMarketCap (@CoinMarketCap) March 16, 2024
While institutional interest in Bitcoin has been on the rise, experts caution that obstacles within the broader cryptocurrency industry, such as security and compliance challenges, may hinder more widespread institutional adoption.
Bullish Projections Post-Halving
Despite potential near-term volatility, some analysts maintain a bullish outlook on Bitcoin’s prospects following the upcoming halving event. Wealth management firm Bernstein anticipates Bitcoin’s price to surge to around $150,000 by mid-2025, citing the elevated demand for spot Bitcoin exchange-traded funds (ETFs) as a key driver behind their price projection.
BERNSTEIN SEES BITCOIN HITTING $150,000 BY MID 2025
We expect BTC to rally into the ETF approvals and ETF initial response, some profit booking into halving in April 2024 and major inflection post halving, once miner risks clear, the analyst further added.
— *Walter Bloomberg (@DeItaone) October 31, 2023
As the cryptocurrency market continues to mature, the imminent halving event, evolving regulatory landscape and the pace of institutional adoption will play pivotal roles in shaping Bitcoin’s price trajectory going forward.
