Bitcoin Aims for $50,000 Driven by Spot Bitcoin ETF Euphoria and the 2024 Halving Event

Bitcoin’s ascent to $38,000, coupled with Ethereum’s surge past $2,100 following BlackRock’s initiation of the first Ethereum spot ETF, has set the stage for a potential push to $50,000. The optimism surrounding the imminent approval of the inaugural Bitcoin spot ETF is a key driver behind this bullish momentum, propelling BTC to a new 2023 high.

Renowned crypto investor Michaël van de Poppe, sharing insights on Twitter, noted that the resistance zone spanning $38,000 to $40,000 was both anticipated and pivotal for sustaining the upward trajectory. Despite a temporary pullback to $36,315 at the time of writing, van de Poppe emphasized the significance of consolidation beneath this resistance level, asserting that the initial test typically doesn’t act as a breaker.

The primary catalyst behind the surge in Bitcoin’s value is the narrative surrounding the spot ETF. However, looking further into the future, market participants anticipate that the bull run will gather momentum from the upcoming BTC halving scheduled for April 2024.

This cyclical event, occurring every four years, halves miner rewards, thereby substantially reducing the available supply of BTC. Historical patterns suggest that Bitcoin prices experience notable rallies in these four-year cycles.

Forecasts for the pre-halving period propose a potential surge to the $45,000 to $50,000 range. Nonetheless, van de Poppe anticipates a substantial correction, foreseeing a retreat to the $32,000-$35,000 range. Following this correction, a consolidation phase is expected before the actual rally ensues.

Another analyst, Rekt Capital, speculates that the peak of the bull run will occur approximately 518-546 days after the halving, pinpointing a timeframe around mid-September to mid-October 2025. This projection adds a layer of complexity to the trajectory, suggesting a phased approach to the anticipated market dynamics.

BTC Price Hits New 2023 Highs; What’s the Outlook?

Bitcoin’s recent surge, mirrored by Ethereum’s ascent above $2,000, marks a significant milestone since July, spurred by BlackRock’s pursuit of an Ethereum spot ETF.

While the rally successfully surpassed the $37,000 resistance, it encountered a temporary halt at $38,000, prompting the liquidation of long positions, as noted by Poppe in a separate post on X.

The crucial support around $36,000 is expected to underpin the cryptocurrency, potentially paving the way for a renewed uptrend targeting the resistance zone of $38,000 to $40,000. Bullish indicators, such as the Moving Average Convergence Divergence (MACD), reinforce the positive sentiment.

Notably, the MACD not only signals a buy but also foresees an impending bullish cross, with the 50-week Exponential Moving Average (EMA) surpassing the 100-week EMA. This confluence of indicators adds credence to the optimistic outlook for Bitcoin’s price.

However, traders should exercise caution due to the emergence of a rising wedge pattern, indicating a possible trend reversal. The scenario becomes particularly noteworthy if the $40,000 resistance remains unbroken and the price dips below the wedge.

A breach below the wedge pattern support could trigger a sell-off, with Bitcoin expected to seek liquidity in the range of $30,000 to $32,000. It’s a reminder that despite the current bullish signals, market dynamics can swiftly shift, necessitating a vigilant approach from traders.