Introduction
Bitcoins’ huge bull run in 2024 may be coming to an end as the ‘digital gold’ daily chart may be looking at a very scary triple-top formation coupled with bearish divergence.
2024 Performance
BTC is up 54% YTD and 160%, looking back on one year. This has followed the traditional cycle of a bull market just after the halving. Let’s see what the technicals tell us.
Technical Analysis
Bitcoin price action is interesting and we see two possible reasons at the moment. We could be looking at a consolidation after the strong uptrend back in Feb/March, from which bulls will step in once more and send price higher into the second half of this year.
The second reason is that the RSI weakness could be leading to a sell-off to a support level. We don’t see this as a possible trend reversal because that would be going against all cycles before this one.
Possible support could be found at $57,000 or, if a dramatic sell-off occurs, $50,000.
If you were unable to get into BTC before this pump began, it could be the time to strike if one of these levels is tested. Keep in mind as well that the 100 SMA will likely act as support too.
Price Predictions
Analysts have provided a range of predictions for Bitcoin’s price by the end of 2024. Some expect Bitcoin to reach as high as $82,576.80, with an average price target of around $87,000 (Benzinga) (CoinGecko).
Market Trends
Bitcoin’s price closed May 2024 at $67,520, showing a 19% growth during the month. Analysts believe that Bitcoin could hit $75,000 by June 2024, driven by renewed buying pressure and increased interest in BTC derivatives (Nasdaq).
Halving Event
The halving, expected in 2024, is likely to have a significant impact on Bitcoin’s price. Historically, halvings have led to price increases due to reduced supply and increased demand. This event is a key factor in many of the bullish price predictions for Bitcoin (CoinCodex) (Cointelegraph).
Long-term Outlook
Looking further ahead, predictions vary widely, with some analysts projecting Bitcoin prices in the hundreds of thousands by 2030. Factors such as continued institutional investment, technological developments, and regulatory changes will play crucial roles in these long-term forecasts (Benzinga) (CoinGecko)
