The world’s largest cryptocurrency Bitcoin (BTC) continues to extend gains for the third consecutive day in a week! At press time, the BTC price is up 3.26% trading at $47,400 with a market cap of $930 billion.
Bitcoin’s Pre-Halving Price Rally
Amid the Bitcoin price consolidation at $43,000 for almost three weeks since the Bitcoin ETF approval, some analysts were predicting a dip to $38,000. However, with strong ETF inflows, the pre-halving rally has already kickstarted and the downside looks limited from here.
The Pre Halving Downside phase is over
Time for the $BTC Pre Halving Rally phase#Crypto #Bitcoin https://t.co/a8pGjbVkTM
— Rekt Capital (@rektcapital) February 9, 2024
According to crypto analyst Rekt Capital, historical patterns suggest that the pre-halving rally phase for Bitcoin typically commences around two months before the actual halving event. With this timeline in mind, the analyst predicts that the pre-halving rally phase should initiate by next week.
However, Rekt Capital notes that in terms of price action, things seem to be progressing slightly ahead of schedule, indicating potential bullish momentum earlier than expected.
Recent Liquidations
Bitcoin briefly surged above $48,000 earlier today, currently hovering around $47,122, marking a 3.9% increase over the past 24 hours. Coinglass data reveals liquidated positions totaling $158 million in the last day, with short positions liquidated at $114 million.
Crypto analyst Ali Martinez commented on the situation, suggesting a potential strategy unfolding in the Bitcoin market. Martinez pointed to the Bitcoin liquidation heatmap, indicating a scenario where liquidity hunters may aim to drive the BTC price down to $45,810. This move is anticipated to trigger liquidations amounting to an additional $54.73 million.
According to the #Bitcoin liquidation heatmap, there’s a potential strategy unfolding where liquidity hunters could drive the price of $BTC down to $45,810. This move is aimed at triggering liquidations amounting to $54.73 million! pic.twitter.com/monFlZmvQ6
— Ali (@ali_charts) February 9, 2024
According to Santiment, Bitcoin’s recent 13% price surge over the past week has prompted traders to speculate on various new support and resistance levels, with many eyeing the $50,000 mark. Interestingly, as the BTC price surpassed these price milestones, altcoins have taken the spotlight in the early hours of the weekend, signaling a shift in focus away from BTC’s price among traders.
As we approach the Bitcoin halving in the next two months, chances are that Bitcoin could continue this rally in isolation. Later, altcoins could catch up with BTC in the post-halving season.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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