Get ready for an exciting ride as Bitcoin is gearing up for a massive rally in 2024. Market experts, led by the prominent figure at Fundstrat, Tom Lee, are predicting an unprecedented surge that could see Bitcoin reaching a staggering $150,000.
Let’s break down the key factors driving this anticipated rally.
Pre-halving Rally and Historic Trends
Bitcoin’s recent climb over $50,000 is signaling the start of a pre-halving rally. Traditionally, Bitcoin’s price peaks at 70% of its all-time high before halving. However, this time, the surge has defied norms by surpassing past highs by a remarkable 30%, suggesting a deviation from the usual pattern.
Adding to the intrigue is Bitcoin’s behavior with Fibonacci levels. Normally, Bitcoin follows a pattern of going up to the 50% to 61.8% Fibonacci levels before retracing back to the 23.6% level. But in an unprecedented move, Bitcoin has not only breached the 61.8% level but is currently trading above $51,000.
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Now the question arises how high Bitcoin can go and what makes it different?
Three Forces: What’s Pushing Bitcoin?
In a recent interview with CNBC’s Squawk Box, Tom Lee identifies three key drivers fueling Bitcoin’s ascent. Firstly, the approval of spot Bitcoin ETFs by the SEC has opened the doors for institutional investment, with giants like BlackRock and Fidelity entering the market. This influx is rapidly increasing the demand for Bitcoin.
Secondly, the upcoming Bitcoin halving event in April is expected to create a supply shock by halving the rate of Bitcoin issuance. Historically, this scarcity-induced dynamic has triggered significant price rallies.
Lastly, the anticipated reduction in interest rates by the Federal Reserve is set to boost Bitcoin’s appeal as a risk asset, further driving its price upward.
A Bright Future for Bitcoin
Supporting Tom Lee’s optimism, renowned investor Robert Kiyosaki predicts an ultra-bullish scenario, foreseeing Bitcoin reaching $100,000 by June 2024. This outlook reflects the widespread bullish sentiment among investors eagerly anticipating substantial gains in the digital gold’s value.
Brace for Volatility!
However many analysts are considering various factors aligning for April, such as the Bitcoin halving, a possible factor for potential volatility, and a selloff. It is expected that Bitcoin can peak between $70,000 and $74,000 before another selloff, with the possibility of surpassing $100,000 or even $200,000 in the future.
Read More: Bitcoin Price Prediction: Will BTC Price Hit New ATH in Q2-2024?
As the crypto world buzzes with excitement, we want to hear from you. What’s your guess for the Bitcoin price?