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Bitcoin enters price discovery zone



Key facts:
  • Bitcoin (BTC) reached a new all-time high in the early hours of March 11, 2024.

  • Above $72,000 there is no support or resistance as this is uncharted territory.

Bitcoin (BTC) has surpassed $72,000 and, at the time of this publication, is setting new all-time highs in price.

The following chart, provided by TradingView, shows the movement of bitcoin’s price over the past month:

Price of bitcoin over the past 30 days. Source: TradingView.

When a financial asset, such as BTC, exceeds all previously achieved benchmarks, it is said to enters the “price discovery zone.”. This means that the asset is traded in a range never seen before and therefore there are no past price references. Price highs or resistance that can guide investors’ expectations.

This phenomenon usually occurs in financial markets with any type of asset, but it is particularly evident in the case of bitcoin and cryptocurrencies because of their high volatility and relative newness.

In this context, market sentiment plays a key role. Investors’ perceptions of the future value of the asset can push prices further into the price discovery zone. Widespread optimism or pessimism can have a significant impact. And, at the time of this publication, investor sentiment is one of extreme greed.According to the famous Index of fear and greed‘ which assesses various parameters.

Fear and greed index for the cryptocurrency market. Source:

Investors of 2 types are getting into bitcoin

All this comes at a time when, as CryptoNews explained in detail, there are two types of investors entering the bitcoin and cryptocurrency market.

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The first of these is the the institutional or corporate investor. The latter usually access the market through regulated instrumentse.g., ETFs on bitcoin or other types of exchange-traded funds.

According to data from CoinShareslast week, capital flows to these funds reached all-time highs. As can be seen in the graph below, more than $2.7 billion flowed in in a single week:

Weekly capital flow into cryptocurrency investment funds. Source: CoinShares.

Specifically, ETFs on bitcoin recently approved in the United States. are proving to be a successboth in terms of trading volume and assets under management. In particular, the iShares Bitcoin Trust ETF, issued and managed by BlackRock, has already accumulated nearly 200,000 BTC.

But bitcoin is not just for institutional investors. Retailers are slowly entering (or re-entering) the market.attracted by high prices.

High bitcoin prices attract new investors. Source: Phemex.

Yesterday, this news portal showed how the Google searches for the term “bitcoin have suddenly skyrocketed to levels not seen since 2020. The same is true for visits to websites related to bitcoin or the cryptocurrency industry.

In the words of Colombian analyst Juan Rodríguez, retail investors will constitute a “second bullish wind“for bitcoin.. And, at the moment, this wind is starting to get stronger and stronger.

How high can bitcoin go?

In the days ahead, we can expect to see a high volatility for the price of BTC. Just as there are many who want to buy bitcoin and not be left out, there are many others who think the price is too high and dump their holdings to profit. This struggle between bulls and bears will give bitcoin turbulent price movements.

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In any case, in the medium and long term, the upward trend is inevitable. In addition to the buying pressure exerted by ETFs on bitcoins, there is also the fact that the beginning of the year is only a short time away. NEXT HALF (an event that reduces bitcoin issuance and has always been a bullish factor for the price of the digital currency). Based on the countdown reported on the home from CryptoNewsHalving will take place on April 20, 2024 (the date could change, depending on the speed at which the next Bitcoin network blocks are mined).

And, although a bullish direction is inevitable, it is a matter of debate to try to determine what bitcoin’s ceiling will be in this cycle.. There are no unanimous answers on this point, because the technical analysis y fundamental are not exact sciences. The opinion of the individual analyst has great influence.

CryptoNews reported, for example, that Argentine influencer Manuel Terrones Godoy (nicknamed “kManuS”) predicts a super cycle for bitcoin in 2024 and 205. According to him, BTC will behave in a way it has never done in the past.. In this supercycle, Terrones Godoy lays out what he believes it will be, the ceiling of the BTC:

“I am asked to throw down values and I make a bet: in this cycle I imagine bitcoin at $500,000 and Ethereum between $10,000 and $15,000. Is that going to happen? I hope so, maybe it will go up more or maybe it will go up less. I have no idea. But if it goes up, it goes up. Because bitcoin is too good once you understand it.”

Manuel Terrones Godoy, popularizer of the cryptocurrency industry.

The analytics firm Nodecharts, on the other hand, conducted projections based on extrapolation of metrics on the chain of past bull cycles. His predictions range from $97,000 to $125,000 per bitcoin as a peak..

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Famous personal finance book author Robert Kiyosaki has also commented on the subject. He believes that bitcoin will reach $100,000 in July and that it could close the year at $300,000.

As can be seen, there are many opinions, but it is impossible to make an infallible price prediction. Therefore, those who wish to profit (i.e., sell their BTC in fiat money) should have an exit strategy. Perhaps, selling a portion of the BTC gradually as the price rises (to DCA reverse) is an option to consider.

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Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect those of CryptoNews.

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