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Crypto revival: Bitcoin skyrockets 50% in 2024


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Bitcoin's explosive 2024 rally sees a nearly 50% increase and with anticipation of the halving event, the king of crypto leads a potential alt-coin rally.

 

original-size.webpSource: Bloomberg

 

 

Written by: Tony Sycamore | Market Analyst, Australia
 
Publication date: 

Bitcoin reigns supreme: the 2024 surge

Bitcoin, the king of crypto, is back! After surging 20% this week, it is now up almost 50% calendar year to date, leaving all comers in its wake in the early months of 2024, including the resurgent nikkei.

Where it took the nikkei a mere thirty-four years to reclaim its 1989 high, bitcoin seems set to retake its November 2021 $69,000 high in just 27 months.

Bitcoin's resurrection from the crypto winter is comparable to that of the mythical Phoenix of Greek legend. But here we have a new legend taking shape, and whether it lasts for 500 years like the Phoenix, as bitcoin's proponents might hope, remains to be seen.

Fueling the rally: influx of bitcoin ETFs

Bitcoin's gains in recent weeks have been fuelled by record client inflows into the newly launched Bitcoin ETFs. Contributing factors include anticipation of the Bitcoin halving event in April, concerns over a partial US government shutdown, and MicroStrategy's Michael Naylor acquiring an additional 3,000 bitcoin for his already significant holdings.

Significantly, bitcoin's ascendancy has begun to extend into the altcoin space, supported by speculation that ETFs for some alternative cryptocurrencies, including Ethereum, Ripple, and Solana, may soon be introduced.

The next frontier: Altcoins on the rise

Ethereum is now firmly entrenched above $3,000, admittedly still with some work to do to reclaim its $4,868 November 2021 high. Solana at $118 is a long way from its November 2021 high. Once a pullback in bitcoin commences, traders will likely cycle into the alts, looking for the next outsized move within the crypto ecosystem.

Bitcoin technical analysis

This week's sharp increase in bitcoin is indicative of a Wave iii of III, the most dynamic phase of an impulsive move within our Elliott Wave framework.

Declines into the mid $50,000 range are expected to be strongly supported as the market prepares for a test and likely breach of the November 2021 all-time high of $69,000.

Bitcoin weekly chart

 

original-size.webpSource: TradingView

Ethereum technical analysis

A similar narrative unfolds for Ethereum. The recent surge in Ethereum's price is characteristic of a Wave III — the most dynamic phase of an impulsive move within our Elliott Wave framework.

Pullbacks towards $3,000 are expected to find strong support as the market prepares for a challenge and probable surpassing of the November 2021 high of $4,868.

Ethereum weekly chart

 

original-size.webpSource: TradingView

 

  • Source: TradingView. The figures stated are as of 29 February 2024. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.

 

 

This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

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