BTC Price Resilience: Can Bitcoin Surge to $100,000 After Halving?

- Advertisement -

• Bitcoin showcases fortitude against US inflation, maintaining price stability above $26,000.
• Speculation grows around Bitcoin hitting the $100,000 mark after the 2024 halving, influenced by significant supply drops and influential market entrants.

Bitcoin’s Reaction to Rising Inflation and Market Dynamics

Following its steady ascension from the $25,000 support earlier this week, Bitcoin‘s price trajectory received a boost with Franklin Templeton Investments’ announcement of a new Bitcoin exchange-traded fund (ETF) application. Even though this development didn’t push BTC past the $26,565 resistance, it fortified the market framework and bolstered investor morale.

The Macro Landscape and Bitcoin’s Position

A key highlight from this week was the release of the August Consumer Price Index (CPI) which surged by 0.6 from the preceding month, marking an annual jump of 3.7%—a figure hotter than anticipated. Even after omitting volatile components like energy and food, the core prices recorded a 0.3% monthly rise, exceeding market predictions, and reflected a 4.3% annual escalation. With oil prices persistently soaring in the recent quarter, it’s evident that the Federal Reserve’s combat against inflation remains a challenging endeavor.

Amid these macroeconomic shifts, both Bitcoin and Ethereum have demonstrated impressive resilience to the mounting inflation in the US. The cryptocurrency community’s reaction to these inflationary spikes has mellowed, with a consensus among both fleeting and enduring holders to maintain their positions, especially with the much-anticipated halving event slated for April 2024.

Despite its inability to surpass the $26,565 resistance, Bitcoin remained undeterred by the unfavorable inflation figures, registering a 1.3% climb on Thursday, solidifying its position over the $26,000 mark.

In technical parlance, Bitcoin currently hovers above vital support zones on its four-hour chart, notably above the descending trendline and the 100-day and 50-day Exponential Moving Averages (EMA). Should Bitcoin perpetuate its position above these critical supports, the trajectory towards the $28,000 and $30,000 landmarks appears plausible.

Concomitantly, signals from the Moving Average Convergence Divergence (MACD) indicate a burgeoning bullish sentiment for Bitcoin. This optimism finds further endorsement from the ‘Supertrend’, another technical indicator hinting at a BTC purchase.

However, traders tread with caution, fully aware of the formidable resistance Bitcoin faces at $26,565, further fortified by the 200-day EMA.

In a recent dialogue in Singapore, Davis Hui, Canaan’s Vice President, accentuated the looming supply deficit post the 2024 Bitcoin halving. He projected this, combined with the entrance of financial giants like Blackrock into the crypto realm, as pivotal drivers of the forthcoming bullish cycle. Hui’s assertions point towards an inflating demand against a tapering supply, propelling BTC towards the tantalizing $100,000 milestone.