Cryptocurrency experts are predicting a strong rally for Bitcoin in the coming weeks, despite the recent surge in U.S. dollar and Treasury yields. According to 10X Research, historical data and technical analysis suggest that the leading cryptocurrency could reach its highest level since late 2021.
Bitcoin, the leading cryptocurrency by market value, has a well-known pattern of bottoming out 12-16 months ahead of its halving event. In the previous three cycles centered around the halving, prices surged by over 30% in the eight weeks leading up to the event. The upcoming halving, scheduled for April 19, will reduce the pace of supply expansion by 50%.
Markus Thielen, founder of 10X Research, pointed out that Bitcoin has historically rallied an average of 32% in the 60 days ahead of the halving. This could mean that prices may trade close to the record high of $69,000 on or before the halving day.
The surge in Bitcoin’s price is also supported by strong inflows into U.S.-based spot exchange-traded funds (ETFs), indicating a bullish mood among traditional investors. These regulated ETFs allow investors to take exposure to the cryptocurrency without the hassle of storing coins.
Additionally, the relative strength index (RSI), a momentum indicator, has crossed above 80 for the first time since December. Previous RSI signals have presaged accelerated uptrends, with an average gain of 54% in the following 60 days, according to 10X Research.
However, it is important to note that past performance does not guarantee future results, and macroeconomic factors could still impact the trend. The present macro picture does look supportive of increased risk-taking, with the U.S. running the most stimulative fiscal policy in years.
Overall, Bitcoin’s potential rally is fueled by a combination of historical data, technical indicators, and the current macroeconomic environment. With the halving event approaching and favorable market conditions, cryptocurrency experts are optimistic about Bitcoin’s prospects in the coming weeks.