Bitcoin price expects a pre-halving surge to $50,000 as spot ETF net inflows reach $255 million

Bitcoin price is regaining ground below $39,000 that it lost during the post-ETF selloff in January. A consolidation between $42,000 and $44,000 is expected before the pre-halving recovery.

Bitcoin price continues to reward patient investors, especially those who dared to buy on a dip below $39,000. The largest cryptocurrency explored lower levels as low as $38,517 but gained ground and rallied 12.15% to trade at $43,200 during US trading hours on Tuesday.

The semblance of stability is also spreading across the market, for example among top altcoins Solana (SOL), ether (SOL) and Cardano (ADA) posted modest gains of 7.6%, 2.4% and 6%, respectively.

The next few days could be crucial Bitcoin. The big question: Will the recent uptrend towards $50,000 continue or will a holding pattern set in? Lurking in the shadows is the ever-present threat of a further price decline to $40,000.

What's next for Bitcoin price this week?

The commendable rally from lows below $39,000 suddenly stalled below $44,000. On the positive side, Bitcoin appears to be holding on to short-term support at $43,000.

A break below this support could create uncertainty in the uptrend. Continued signs of weakness would force investors to sell in order to buy later at a lower price.

However, before dooming the largest cryptocurrency to failure, it would be wise to consider the likelihood of BTC consolidating between $42,000 and $44,000.

Bitcoin price chart | Trading view

The purple band supported by the presence of all three major moving averages; The 50 Exponential Moving Average (EMA) (in red), the 200 EMA (purple), and the 20 EMA (blue) could halt potential losses to $40,000.

Although the Relative Strength Index (RSI) is at 70, it is showing signs of a pullback to neutral territory, suggesting that sellers are starting to catch up and take action against Bitcoin.

On the higher time frames such as the weekly chart, Bitcoin is struggling to invalidate a bearish divergence. Interestingly, the RSI is already “pushing above its downtrend (red),” analysts at Rekt Capital said on X.

#BTC

I'm trying hard to invalidate the weekly bearish divergence (which was already evident in last week's dip)

The RSI is already pushing above its downtrend (red)$BTC #Crypto #Bitcoin https://t.co/da6foTzPwg pic.twitter.com/3fykEes2gA

– Rekt Capital (@rektcapital) January 30, 2024

Are Investors Preparing for Bitcoin Rally Ahead of Halving?

Bitcoin's next halving, which will again cut miners' rewards in half, is expected in less than three months. This is a pivotal moment for investors as BTC price has historically demonstrated the ability to trigger a post-halving bull run.

At the same time, a pre-halving rally based on the hype surrounding the event often triggers an amazing move in the price of Bitcoin. Renowned crypto investor Michaël van de Poppe predicts that BTC could surpass $50,000 before the halving.

#Bitcoin has taken liquidity above the peak and is likely to consolidate.

Overall, it seems likely that a new test of $48,000-$50,000 will take place before the halving, and altcoins will massively outperform during this time. pic.twitter.com/fJ7QUZKRSA

– Michaël van de Poppe (@CryptoMichNL) January 30, 2024

Additionally, Bitcoin spot exchange-traded funds (ETFs) have continued to gain momentum since their debut in the US earlier this month. The latest market data shows that the products collectively achieved a weekly net inflow of more than $255 million.

Recommended: 5 reasons why Solana (SOL) price is skyrocketing daily

Grayscale, which saw the highest outflows after launching its GBTC ETF from the Bitcoin Trust product, saw lower outflows for the “fifth day in a row,” as well as the lowest outflow from day one.

Yesterday's #Bitcoin Spot ETF data was very positive!

– Highest net inflow in over a week (+$255 million)
– Grayscale outflows fell for the fifth consecutive day and were the lowest outflow since Day 1.

The worst of the selling pressure appears to be over.

We also learned that… pic.twitter.com/Ee3FXLe7Kr

— ChiefraT (@ChiefraFba) January 30, 2024

According to ChiefraT, a trader on Both the halving and the launch of spot ETFs could support the biggest bull run in BTC history.

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