As Bitcoin has crossed $70K with its exceptional performance, investors and crypto enthusiasts now wait for it to break its previous all-time high of $73,750. It is currently trading at $71,043 and needs around a 4% surge to create the new ATH.
Various crypto price analysts have polarizing views about Bitcoin crossing its ATH within the next 24 hours, however, the general community sentiment is positive, showing around 72% bend towards the bullish momentum.
Why is Bitcoin Surging? Current Market Scenario of BTC
Today Bitcoin continues its upward movement, with an increase of 5.06% in 24 hours. If it keeps this pace, a new all-time high can be achieved effortlessly within the next few hours. There are various reasons for its exponential growth, and let’s talk about a few.
- Regulatory Clarity and Mass Adoption: In previous months we saw governments across the globe creating regulatory frameworks for BTC, by giving the attention it deserves. At the beginning of this year, various US-based BTC funds got the SEC’s approval to trade Bitcoin ETFs, which was a vital factor that helped BTC recover from its bear phase. The recent U.S. Federal Reserve’s rate cut also helped the BTC. Also, the speculations about Russia, along with BRICS nations, looking forward to a crypto-based alternative economy added fuel to the run.
- Bitcoin Halving: On April 19, 2024, Bitcoin halving was completed, reducing the mining rewards to 3.125 BTC. Historical data shows that the price of BTC substantially increased within six months of each halving. This is very much evident in the 2012, 2017, and 2020 charts. Halving attracts investors as it reduces the new supply which has led to price increases in past cycles. Now, it is repeating in 2024.
- General Market Sentiment: This year saw the arrival of a massive number of newcomers to the cryptocurrency environment. From key opinion leaders to web3 clicker games, all contributed to this surge. Retail trading of BTC saw new heights recently, and similar progress is happening in the DeFi ecosystem. The technological advancements, regulatory friendliness, and intrinsic value brought the market into a positive light.
Will BTC Reach an All-Time High in the Next 24 Hours?
After the decreased activity at the weekend, yesterday saw a significant increase in the trading volume. This is expected to continue today. However, the selling pressure is also high, as various traders are trying to cash out their profits.
The fear & greed index is around 72, and when new short-term traders arrive, hoping to cash out after the ATH, the greed meter and FOMO will increase, which may ignite a correction before it reaches an all-time high.
There is a high possibility for a correction within the next 24 hours, further delaying the ATH. If you are planning to invest, it is better to purchase at the time of a dip. If you are confused about whether to HODL or sell, well, long-term holding is the best solution so that you don’t have to worry about short-term price corrections. However, cashing out a percentage of the profit is a practical and balanced solution.
What Happens After Bitcoin Reaches a New ATH?
After Bitcoin reached its heights of around $69K in November 2021, a huge correction happened, and the whole crypto market entered a bear phase. It took three years for the BTC to beat the previous all-time high. It is been 8 months since it created a new record, and it continues to keep a steady momentum with support level points around 53K and 56K.
Finally, the chances of BTC reaching ATH within the next 24 hours are less, and a small correction can be expected. Despite the dip in the support levels, the BTC will probably continue to rise till it reaches its all-time high, and it will take longer than 24 hours. However, after the ATH, the selling pressure will increase and it may ignite the bear market, as evident in previous cycles.
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