Bitcoin's momentum continued over the weekend and the asset managed to close above $48,000, actually marking its highest weekly close since December 2021.
With the upcoming halving just a few months away, which usually serves as a catalyst for further price increases, the community is speculating whether BTC will stop declining before the event.
BTC’s highest closing price in 2 years
Bitcoin experienced a massive crash in mid-January after the US Securities and Exchange Commission gave the green light to 11 spot ETFs. It turned out to be a classic sell-the-news event: the cryptocurrency rose to over $49,000 on the day the products were released for trading and collapsed the next over ten thousand dollars in two weeks.
After hitting the bottom at $38,500, bulls started pushing the asset higher again. This resulted in two consecutive weeks of gains. The most impressive was last week, which ended on Sunday evening.
At this point, BTC had recovered almost all of the losses caused by the launch of the ETFs and closed at just over $48,300 (on Bitstamp). This is the asset’s highest weekly close since the end of the 2021 bull market in December.
BTCUSD weekly scale. Source: TradingView
This comes amid reports and speculation in the crypto community that the asset's price could reach new heights in the following weeks and months due to potential inflows of up to $130 billion this year alone.
CryptoQuant's CEO shared a similar forecast yesterday, setting a best-case price forecast for Bitcoin in 2024 at $112,000, depending on the total amount of inflows into the US spot ETFs.
Never under $40,000 again?
The potential inflows into spot Bitcoin ETFs are just part of the bullish sentiment for 2024. The other notable event, set to take place in about two months, is the fourth BTC halving. The halving is intended to halve the production of new BTC and takes place approximately every four years.
In theory, if demand for the asset stays the same or increases, the price of Bitcoin should rise as the amount of new BTC produced drops by half. History shows that the cryptocurrency has actually surged in the months following each of the previous three halvings.
While this is not an indication of future price movements, it does set the mood for the upcoming halving, leading analysts like PlanB and Lark Davis to speculate that there may not be another decline leading up to the event.
PlanB went a step further and suggested that the price of BTC is unlikely to fall below $40,000 again as it is currently trading above its full, 2-year and 5-month realized prices.
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