Bullish for Bitcoin? BTC With the Highest Weekly Close Since Dec ’21

Bitcoin’s momentum continued over the weekend, and the asset managed to close above $48,000, which actually became its highest weekly closing point since December 2021.

Given the upcoming halving, which is just a couple of months away and typically serves as a catalyst for further price growth, the community speculates if BTC will not retrace anymore ahead of the event.

BTC’s Highest Closing Price in 2 Years

Bitcoin endured a massive crash in mid-January after the US Securities and Exchange Commission greenlighted 11 spot ETFs. In what turned out to be a classic sell-the-news event, the cryptocurrency pumped to over $49,000 on the day the products went live for trading and slumped by more than ten grand in the next two weeks.

After bottoming out at $38,500, the bulls started to propel the asset upward again. This resulted in two consecutive weeks of gains. The most impressive was last week, which closed on Sunday evening.

At this point, BTC had erased approximately all losses induced by the ETFs’ launch and closed at just over $48,300 (on Bitstamp). This is the asset’s highest weekly closing price since the end of the 2021 bull market in December.

BTCUSD Weekly Scale. Source: TradingView

This comes amid reports and speculations among the crypto community that the asset’s price could go to 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 prediction yesterday, setting a best-case price forecast for Bitcoin in 2024 at $112,000, depending on the total amount of inflows toward the spot ETFs in the States.

Never Again Below $40K?

The potential inflows into the spot Bitcoin ETFs are just a part of the bullish sentiment for 2024. The other notable event that is scheduled to take place in about two months is the fourth BTC halving. Designed to slash the production of new BTC in half, the halving takes place approximately every four years.

In theory, Bitcoin’s price should increase if the demand for the asset remains the same or increases since the amount of newly produced BTC declines by half. History shows that the cryptocurrency has indeed soared in the months after each of the previous three halvings.

While that’s no indication of future price performances, it sets the mood for the upcoming halving and leads analysts, like PlanB and Lark Davis, to speculate that there might not be another retracement ahead of the event.

PlanB went further, suggesting that BTC’s price might not go below $40,000 again, given that it currently trades above its overall, 2-year, and 5-month realized prices.

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