The first half of 2024 has been exceptionally bullish for the broader crypto market. Bitcoin, in particular, saw significant developments, including the approval of a spot ETF in the U.S. and its fourth halving event. These milestones have driven Bitcoin’s price up by more than 60% year-to-date, with the cryptocurrency trading just 8% below its recent high of $73,750.
Looking ahead to the second half of 2024, several additional catalysts are poised to sustain and possibly accelerate Bitcoin’s bull run, with a target of reaching the $150,000 milestone.
1. Bitcoin’s Halving Yet to Impact Price
On April 20th, the Bitcoin network completed its fourth Halving, an event that reduces the miner rewards for each block of Bitcoin mined from 6.25 BTC to 3.125 BTC. This development causes a direct impact on new BTC supply entering into the market and with the demand pressure increasing, the asset is poised for a rebound.
However, the Bitcoin price action has been sluggish since the halving indicating a post-halving consolidation in the market. Renowned trader Rekt Capital suggests that a weekly candle close above $71,500 could trigger a breakout from Bitcoin’s re-accumulation range. However, historical patterns indicate that Bitcoin might need to consolidate within this range for several more weeks.
A Weekly Candle Close above ~$71500 would probably kickstart the breakout from the Re-Accumulation Range
However, history suggests Bitcoin should consolidate inside this Re-Accumulation Range for several weeks more
Extended consolidation here would get Bitcoin closer to… pic.twitter.com/Af0W4MMBTN
— Rekt Capital (@rektcapital) May 21, 2024
This extended consolidation would align Bitcoin with its historical halving cycles, which typically precede significant bull runs. The current cycle’s acceleration is around 190 days, improving from the 260-day cycle in mid-March.
Also Read: Bitcoin Price Rally to $100K after BTC Halving, Said Bitwise CEO And More
2. Crypto Adoption Through ETF Launching
On 11th January, the first 10 Bitcoin ETFs started trading in the US market, attracting a flood of initiation investment in this asset. The impact of this development was evident by the February rally in BTC price which reached a new high of $73750 in March.
Investors’ focus has now shifted to the approval of a spot Ethereum ETF. While the U.S. SEC has approved the ETH ETF, issuers must wait for their S-1 registration statements to be approved before trading can commence.
Unlike the Bitcoin ETF, the Ethereum ETF may provide better confirmation for similar financial products emerging for other altcoins. This development is anticipated to significantly enhance the adoption of cryptocurrency assets, thereby bolstering the broader market trend and contributing to increased market stability and growth.
Also Read: MicroStrategy CEO Michael Saylor Celebrates Bitcoin ETF Reserve Surpassing 1M BTC
3. Upcoming U.S. Election Could Bolster Bitcoin Price Bull Run
The upcoming U.S. presidential election could be a significant catalyst for a bull run in the cryptocurrency market. Republican candidate Donald Trump has been increasingly vocal in his support for the crypto industry, contrasting with President Biden’s policies.
Trump has expressed a positive outlook on cryptocurrency companies, emphasizing the need for the U.S. to lead in this burgeoning industry. He stated on his Truth Social account, “I am very positive and open-minded to cryptocurrency companies and all things related to this new and burgeoning industry. Our country must be the leader in the field and there is no second place.”
Thus, the Pro-crypto policies could foster innovation, attract investment, and provide clearer regulatory frameworks.
Also Read: Crypto Market Prediction: MVRV Ratio Hints Bitcoin Bull Run Has Room to Grow
4. Interest Rate Cuts and Monetary Policy
The Federal Reserve’s potential interest rate cuts in the latter half of 2024 could create a favorable macroeconomic environment for Bitcoin. Lower interest rates generally lead to increased investment in speculative assets like Bitcoin. The ongoing inflation and high federal debt levels might also force the Fed to maintain an accommodative monetary policy, further boosting Bitcoin’s appeal as an inflation hedge.
5. Reversal Pattern To Bolster Porlong Bitcoin Rally
Analyzing the daily time frame shows that Bitcoin prices are developing an inverted head and shoulder pattern. This pattern is commonly spotted at a major market bottom and bolsters a sustainable recovery trend following the breakout from the neckline.
By press time, the BTC price had traded at $68080 and held a market cap of $1.341 billion. If the pattern holds, the coin holders can witness a major correction to develop the right shoulder for the chart setup. The retracement could be the last pullback before the asset price gives a sustainable breakout from the $73750 high.
Conclusion
The convergence of these catalysts—halving, spot ETFs, favorable monetary policies, November’s election, and favorable price behaviors—sets the stage for a significant Bitcoin bull market. As these factors play out, Bitcoin could see a parabolic rally, potentially reaching the $150,000 mark.
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