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Bitcoin Starts 2024 With a Bang; Traders Anticipate Parabolic Rally
- As the dust from New Year’s fireworks settles, Bitcoin continues to surge, leaving its crypto peers behind with significant recent gains and optimistic forecasts.
- Some advised diversifying into promising altcoins while mainly focusing on top assets like Bitcoin and Ethereum.
- 2024 could shape out to be a significant year for crypto with events like Spot ETF and Ethereum ETF approvals, Bitcoin Halving, and an increasingly favourable regulatory environment for institutional adoption.
- We are approximately 100 days away from Bitcoin’s Halving in April, this potentially means significant investment opportunities and eventual post-Halving uptrends.
Virtual vs Literal Dust
With the (literal) dust settling after the New Year fireworks, Bitcoin is not showing any signs of slowing down and is leaving its peers in the (virtual) dust. While BTC had an outstanding 2023, which saw 160% price gains, in the past few hours it has put in some heavy work and is gaining almost 7% in the past 24 hours.
And the number one crypto is leaving most altcoins behind, with only Ethereum, Solana and Avax making similar gains in the top ten by market cap. Crypto investor and influencer Scott Melker, shared on X with his over 900k followers what he believes is next for Bitcoin. Melker, better known as “The Wolf Of All Streets,” sets the target for Bitcoin at USD $54,000 (AUD $79,191). However, he was quick to point out that targets are rarely reached but the chart supports this move after BTC was in consolidation for the better part of a month.
What’s Ahead for Crypto 2024?
Trader Michaël van de Poppe suggests investors diversify their portfolio towards promising altcoins while remaining heavily in high-class assets such as Bitcoin and Ethereum. He likened chasing the next big x100 to gambling, saying larger alts are preferred.
Van de Poppe believes 2024 will be massive for crypto, with the Spot BTC ETF approvals, Bitcoin Halving and Ethereum ETF approvals. He also suggests the regulatory path becoming more accommodating towards institutional interest and adoption.
Bitcoin Halving Getting Closer
As a reminder, Rekt Capital informs their 380k followers that we are just around 100 days away from Bitcoin’s Halving, expected to occur in April.
Rekt Capital states historically, dips in Bitcoin’s value during this time have led to high returns after the Halving. Typically, a Pre-Halving rally occurs 60 days before the Halving due to speculative buying. However, a retrace often follows around the Halving time, previously seeing drops of 38% in 2016 and 20% in 2020. Post-Halving, a re-accumulation phase ensues according to Rekt Capital, with some investors leaving due to the slow growth. Finally, Bitcoin enters a parabolic uptrend, often achieving new highs.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
