After a challenging 2022, the cryptocurrency market is showing signs of recovery, with Bitcoin (BTC) leading the charge. Recent data reveals that an impressive 91% of BTC holders have turned a profit from their investments, even those who purchased at or near the peak of the previous bull cycle. This encouraging news highlights the resilience and potential of the world’s premier cryptocurrency.
Driving the renewed optimism surrounding Bitcoin are several key factors, chief among them being the much-anticipated Bitcoin halving event slated for April 2025. During the halving, the number of new Bitcoins minted per block gets cut in half, thereby reducing supply and putting upward pressure on the coin’s value due to increased scarcity. Historically, Bitcoin halvings have preceded substantial price increases, providing hope for another strong rally come 2024.
Institutional adoption of Bitcoin is yet another crucial driver behind the burgeoning positivity towards BTC. An ever-growing list of businesses recognize the advantages of incorporating Bitcoin as a payment method, and this momentum is set to persist through 2024 and beyond. Moreover, the advent of spot Bitcoin exchange-traded funds (ETFs) offers investors fresh avenues to access the cryptocurrency without directly buying and selling individual coins, broadening Bitcoin’s appeal.
Bitcoin price predictions & optimism for 2024
Industry analysts are increasingly confident in Bitcoin’s trajectory, expecting a potential new all-time high for the coin in 2024. Notably, prominent figures like Mike Novogratz, Founder and CEO of Galaxy Digital, anticipate that Bitcoin may reach anywhere between $50,000 and $100,000 next year. Another renowned expert, Tom Lee, Co-founder and Head of Research at Fundstrat Global Advisors, shares these sentiments, stating that Bitcoin’s fair value lies above $100,000 based on its historical relationship with gold.
Further strengthening the favorable view of Bitcoin is the identification of a “cup and handle” pattern on its one-week chart, which I have previously explained here.
This bullish continuation pattern suggests that the price of Bitcoin may increase to approximately 70k in the upcoming months.
The pattern consists of an uptrend (the “cup”), followed by a period of consolidation or slight downtrend (the “handle”). When the handle forms and then breaks above the resistance level created by the rim of the cup, this can indicate further upward momentum for the asset.
With such promising indicators pointing towards a prosperous 2024 for Bitcoin, both veteran and novice investors would be wise to keep a watchful eye on the evolving trends shaping the cryptocurrency landscape. While no predictions can be guaranteed, the odds seem favorable for a continuation of Bitcoin’s incredible journey.
