Bitcoin Price Readies for a Return to All-time Highs After the Halving

Bitcoin Price Readies for a Return to All-time Highs After the Halving

Bitcoin, the largest cryptocurrency by market capitalization, rose back above the $65,000 on April 21, a day after the 2024 Bitcoin supply halving.

Data from TradingView shows that BTC price rose  from a low of $64,346 on Sunday to an intra-day high of $66,527 on April 22.

At the time of writing, the Bitcoin was trading at $66,349, up 1.7% over the last 24 hours.

BTC's daily trading volume has jumped 11% over the same time frame to $24 billion, as bulls buy enter on the dips after the recent drawdown. Bitcoin's market cap has increased to $1.3o3 billion, reinforcing its position as the most valuable cryptocurrency in the world.

Over $112 million liquidated across crypto markets

BTC's return to $65,000 has resulted in a number of leverage positions being liquidated across the crypto market. According to data from Coinglass, more than $112 million has been liquidated — $54 million of these being short liquidations over the last 24 hours. Over $25 million short position BTC liquidations have been experienced over the last 24 hours, with the daily tally continuing at the time of publishing.

Bitcoin position liquidations. Source: Coinglass

More than $12.09 million short Bitcoin positions have been liquidated over the last 12 hours alone

Bitcoin's V-shaped recovery pattern points to am entry into priice discovery

After hitting new all-time highs at $73,808 BTC price fell sharply dropping 18% to $59,686, before climbing again steeply to the current level. This had led to the appearance of a V-shaped recovery chart pattern on the daily chart.

At the time of publication, BTC was fightingresistance from the $67,000 level. A daily candlestick close above this level would see Bitcoin's price rise to confron the resistance from the chart pattern's neckline at $72,576, representin a 9% uptick from the current price. Higher than that, the flagship cryptocurrency would rise to tag the all time high above $73,800.

Breaking all-time highs would usher Bitcoin into price discovery with some traders saying that the $80,000 level would be the first stop for the big crypto.

BTC price chart. Source: TradingView

The moving averages are pointing upward, and the relative strength index (RSI) runs within the positive region at 50.6. This suggested that the market conditions have flipped in favour of the upside.

In addition, on-chain data from IntoTheBlock shows Bitcoin sits on strong support at $64,000. Its In/Out of the Money Around Price (IOMAP) chart shows that this level is within the $64,090 to $66,048 price range where approximately746,850 BTC were previously bought by roughly 1.54 million addresses.

Bitcoin IOMAP chart. Source: IntoTheBlock

On the downside, the bears would try to pull the price below the chart's support line at $68,550, with the $68,000 psychological level providing the first line of defense. In dire cases, BTC could drop to $65,000 and later to the V-shape's low at $60,805.

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