Here’s Why Bitcoin (BTC) May Hit Another ATH This Year: Analysts

TL;DR

The price of Bitcoin has fallen more than 8% in the past two weeks to around $65,200, but analysts expect a rally to $72,000-74,000 and potentially above $100,000 by the end of 2024. The interest high BTC open and negative net exchange flow suggest higher volatility and upside potential. The next possible movement of BTC

The leading cryptocurrency by market cap has underperformed in recent times, with its price falling more than 8% in the past two weeks. It is currently trading around $65,200 (according to CoinGecko data), down 12% from the all-time high recorded in mid-March of this year.

However, prominent industry participants and analysts expect a rebound in the near future. An example is Crypto Rover (an X-user with almost 800,000 followers), who believes that BTC has “all the bottom” and is now poised to rise to $72,000-$74,000.

Recall that the price of the asset fell to $64,000 on June 18, but recovered some of the losses the next day.

Titan of Crypto also chimed in, envisioning a potential rally above the $100,000 milestone before the end of 2024. The analyst based his forecast on BTC’s halving, which took place in April of this year

#Bitcoin It was about time. ⌛️🚀

After the half #BTC it takes a few months before it pulverizes its previous ATH.

This time is no different.

Patience my friends. pic.twitter.com/cx26164J0D

— Titan of Crypto (@Washigorira) June 18, 2024

The halving occurs every four years and halves the daily issuance of new assets. Historically, it has been followed by a massive increase in BTC prices and a resurgence of the entire cryptocurrency market.

For his part, Ali Martínez argued that BTC could still reach the top of its cycle, assuming it reflects its performance in previous bull runs. The analyst believes the price could peak around December 2024 or October 2025.

Taking a look at some of the leading indicators

Important on-chain metrics such as BTC open interest and exchange net flow signal increased volatility going forward and a potential bull run. Bitcoin open interest refers to the total number of outstanding derivative contracts, such as futures or options, that have not yet been settled.

An increase in the metric generally indicates that fresh capital is flowing into the ecosystem, suggesting that traders are opening new positions or adding to existing ones. However, it can also signal the opening of new short positions, which could cause the price to fall due to increased selling pressure.

BTC open interest reached an all-time high in early June. Despite the pullback in the following days, the indicator is still not that far from its peak (according to CryptoQuant data).

Meanwhile, the net exchange flow of BTC has been predominantly negative in the past week, suggesting a shift away from centralized platforms towards self-custodial methods. This is considered bullish as it reduces immediate selling pressure.

BTC Exchange Netflow, Source: CryptoQuant SPECIAL OFFER (Sponsored) Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

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