Bitcoin price continues its parabolic rally with a swift move to $64,000. Is a new all-time high the next stop?
Bitcoin price rallied in excess of 10% to a new 2024 high at $64,000 on Feb. 28. The bulk of this month’s 50% price move is being attributed to investors’ anticipation of the upcoming supply halving event, which is typically followed by strong upside price action.
The steady inflows to the recently launched spot Bitcoin
BTC $61,211 exchange-traded funds (ETFs) are also thought to be playing a critical role in Bitcoin’s price action.
Some technical analysts have warned that Bitcoin’s market structure and high funding rates across the market are a sign of heavy leverage use and will eventually lead to a liquidation-driven correction.
Citing key Bitcoin’s options markets, open interest and funding rate data, analyst Chris Newhouse said:
“From my perspective, the recent rally has aspects of a derivatives driven move combined with an undertone of spot demand off the back of record ETF inflows. Breaking through the $53K region showed relative strength, volumes were high, natural demand was there, and momentum traders had started to pile in to the trade.”
Was $64,000 the top?
Shortly after reaching $64,000, Bitcoin price flash crashed to $58,700, likely the result of a sell wall at this level and a clearing out of late leveraged longs. However, at the time of publishing, BTC had recovered nearly 5% of the downside move.
BTC/USDT 1-hour chart. Source: TradingView
Bitcoin is currently less than 13% away from its all-time high, and many retail and institutional investors expect the record $68,900 level to be overtaken before the supply halving, which is scheduled to occur in roughly 52 days.
