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Bitcoin (BTC) hit yet another all-time high on March 11, briefly crossing the $73,000 mark to set a high at $73,039 on Coinbase.
BTC is recovering from the effects of the U.S. Consumer Price Index (CPI) data, which came in hotter than expected. After the United States Bureau of Labour Statistics (BLS) released the CPI print on the morning of Tuesday, March 12, 2024, BTC dropped as much as 6% toward $66,200.
The pioneer cryptocurrency has since recovered back above $72,000 to continue its uptrend.
Bitcoin price seeks to continue its uptrend driven by capital inflows into spot Bitcoin ETFs. According to data compiled by BitBEX Research, these investment products saw an inflow of $505 billion on March 11. The total assets under management now are above $58 billion. So far, the ETFs have seen total inflows of $10.1 billion since their market debut on Jan. 11.
Moreover, the upcoming Bitcoin halving, which reduces the number of block rewards miners get by half, is expected to contribute to BTC's price growth as forces of supply and demand play out. The halving event is expected to take place in April 2024, after which miner rewards will be reduced from 6.25 BTC to 3.125 BTC.
BTC hodlers have been clutching onto their stash in anticipation of this price increase, as evidenced by decreasing exchange deposits over the last week. Data from market intelligence firm Glassnode shows that the number of transactions transferring BTC from self-custody to known exchange wallets has decreased from 114,422 on March 5 to 74,000 on March 12.
This shows that investors prefer holding on to their BTC and waiting for prices to increase rather than sending them to exchanges and selling at current prices. Transfer of crypto to exchanges is usually done with the intent to sell. This lack of intent to sell from BTC holders is a bullish sign for the price.
Analysts at crypto broker Bernstein said on March 11 that they were convinced that Bitcoin's price will hit $150,000 by mid-2025. This analysis follows BTC's breaking of its 2021 all-time highs earlier this month.
Bernstein also believes that Bitcoin will break out in a parabolic uptrend after the halving.
These analysts draw their projections from BTC price trends over the last few months. All fundamentals, macro factors and technical indicators point to a continuation of the uptrend for the largest cryptocurrency by market capitalization.
The 20-day, 50-day, and 100-day exponential moving averages (EMAs) point upward, indicating that buyers dominate the market.
Additionally, the directional movement index (DMI) reinforced BTC's uptrend. The positive directional line (+D1) at 31 was way above the negative directional line (-D1) at 7.8. The average directional line's (ADX) position at 52 suggested that the uptrend was very strong.
As such, the BTC price could continue rising from the current levels and continue its price discovery. Whether it will reach $150,000 or not remains to be seen.
TradingView chart: BTC/USD daily chart
On the downside, BTC could drop from the current levels, with the psychological level at $70,000 providing the first line of defense. BTC's downside could be capped at around $68,000 in the short term.
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