Bitcoin (BTC), the world’s largest cryptocurrency, finally hit $30K last week after 10 months of anticipation thanks to growing optimism that the US Federal Reserve will soon end its aggressive monetary tightening campaign.
As of April 18, BTC is trading at $29.9K, down 3.7% from its 90-day high of $31,005, reached on April 14. The recent rise in Bitcoin price has been driven by a change in the monetary tightening campaign of the US Federal Reserve. Investors believe a more stable and predictable environment will emerge as the central bank eases interest rate hikes in order to relieve stress for the banking sector.
This optimism stems from the turmoil the banking sector experienced in March, which led to increased expectations of Fed’s leniency. The closely watched US non-farm payrolls (NFP) report on Friday showed that employers maintained a strong pace of hiring in March, indicating an economy that is still resilient.
Some experts, like DonAlt, a technical analyst who predicted the 2023 bull market, believe that Bitcoin can reach $50,000. However, the possibility that the asset will soon correct cannot be ruled out. Meanwhile, miner’s profitability and their state in the network play an important role in Bitcoin’s price movements.
The difficulty-adjusted Puell multiple, a metric that measures the profitability of miners while considering the difficulty of Bitcoin mining, currently stands at 0.88. A metric below 1 indicates that miners still need to be profitable, which can affect the price of Bitcoin.
In addition to technical and on-chain indicators, sentiment among traders plays an important role in bitcoin’s price rise, sentiment among traders plays an important role in Bitcoin price. Some experts note that the recent rally to $30,000 lacks the “crypto mania” seen in previous rallies, suggesting that a potential correction could happen.
With 700 wallets bought 390k BTC at $29,330-$30,200, we have a solid support level to watch. Conversely, 770k wallets bought 360k BTC at $30,270-$32,200, signaling a tough resistance zone.
Meanwhile, the recent increase in the fee-to-rewards ratio signals the start of a new accumulation cycle in the Bitcoin market, reminiscent of the patterns observed in 2019 and 2020. This indicates a potential price rally leading up to the 2024 Bitcoin halving.
In this context, CoinCodex expects BTC to maintain its upward momentum and reach $32,729 on October 14, implying a 10 percent increase from the current price.
In a nutshell, as the cryptocurrency continues to grow rapidly, all are focusing on the upcoming Bitcoin halving in 2024. Current market indicators, such as the fee-to-rewards ratio, suggest a new accumulation cycle is underway, as the similar patterns seen in previous years.