BTC Rally Continues

Bitcoin prices touched their highest level on record over night, before softening back a touch for now. BTC futures reached highs of 69595 overnight, eclipsing the prior all-time-highs of 69355, set in November 2021. The leading crypto coin has been on an impressive run higher in recent weeks, up almost 80% from the YTD lows seen in January. A combination of institutional demand and optimism ahead of the much-touted April halving event are helping drive Bitcoin here. The question now is whether the rally has the legs to sustain a proper breakout above those prior highs or whether a double top will form here, leading a reversal lower?

ETF Approvals & Halving Optimism

The approval of spot-Bitcoin ETFs is an historic milestone for the crypto community. With institutional traders now able to access Bitcoin for the first time, demand has been soaring. More than $7 billion has been raked in by funds since approval in January. The timing of this demand is even more interesting set against the backdrop of the upcoming April halving event. With previous halving events leading to sizeable rallies over the 12-months post-halving, bulls are hoping that Bitcoin is on the verge of a fresh expansion phase. Indeed, some big names like Standard Chartered have predicted Bitcoin will hit highs of $100k this year.

Technical Views

Bitcoin

Looking at the weekly chart we can see price is now testing that key 69355 level, the prior record highs. This is a major price level for BTC and traders will be carefully monitoring price action near-term. Should we see any correction lower, 64540 and 59755 will be the key support levels to watch, with bulls needing to defend that lower level to maintain the current bullish bias or risk a deeper correction building.