Bitcoin set for new all-time high in 2024 as worst correction ends, experts say

Source: Crypto Briefing

Bitcoin (BTC) regained momentum during the weekend and started climbing from the $56,000 price zone to the current $63,585.22, after a nearly 12% increase during this period. Along the way, BTC reclaimed important price levels and left the worst part of its correction behind, according to industry experts. This opens up the path for a potential new all-time high in 2024, possibly before this summer ends.

The trader who identifies himself as Rekt Capital stated in an X post that Bitcoin finished a 25.2% correction that lasted 42 days. Additionally, Hank Wyatt, founder of DiamondSwap, shared with Crypto Briefing that repayments to Mt. Gox creditors and the end of the BTC liquidation by the German government might suggest the worst correction of the current period might be over.

“These events had exerted significant downward pressure, but with them mostly behind us, Bitcoin has the potential to trade within a higher range, assuming no new macroeconomic disruptions happen,” Wyatt added.

James Davies, Founder and CPO of CVEX, also highlighted that Bitcoin started rebounding after the German government was done selling its BTC holdings. Despite the claims that the Trump incident was the major factor behind the price growth during the weekend, Davies points out that the upward movement started before that.

“The rally started earlier and was even more pronounced during Asian trading hours. In my view, this suggests the rebound is a return to fair value, as the market was temporarily oversold due to insufficient liquidity to absorb the temporary sell pressure,” he added.

Mehdi Lebbar, co-founder and president of Exponential.fi, also believes that the market is looking bullish on Bitcoin after the German government depleted its Bitcoin stash. Furthermore, since the repayment of Mt. Gox’s creditors happened 10 days ago, Lebbar adds that the market can assume that the ones who needed to realize profits have already done so.

Stuck until the first rate cut?

Although Bitcoin has reclaimed important price levels, the market expects that the largest crypto by market cap will still trade within its previous range between $65,000 and $71,000 for the next few weeks. The first rate cut from the Fed, set to happen in September, could be able to break this range.

Hank Wyatt, from DiamondSwap, shares this market expectation, adding that it could serve as a catalyst for Bitcoin to surpass its previous all-time high.

“Lower interest rates generally reduce the appeal of fiat currencies and more traditional investments, thereby enhancing the attractiveness of Bitcoin and other cryptocurrencies. However, if the rate cut does not materialize, continued volatility and consolidation may still occur as the market adjusts its expectations and seeks new drivers for upward movement,” added Wyatt.

Although he recognizes the importance of a rate cut for the current crypto market situation, Mehdi Lebbar, from Exponential.fi, believes that BTC currently has a lot of idiosyncratic considerations that make a Fed rate cut unlikely to be the most significant event affecting its price in the next few months.

“For instance, the introduction of the ETH ETF could impact Bitcoin’s price by reviving overall interest in crypto. Additionally, the US election and the potential election of a more crypto-friendly administration could positively influence both Bitcoin and the broader crypto market. Most importantly, Bitcoin increased 6x post-halvening in the previous cycle (May 2020 – October 2021) and 20x in the cycle prior (July 2016 – December 2017),” he explained.

New all-time high possible this summer

Bitfinex analysts shared with Crypto Briefing that a new all-time high could be registered by Bitcoin before the end of summer. Yet, this would require a significant bullish catalyst, such as major institutional adoption or favorable regulatory developments in the form of a successful spot Ethereum ETF and complete pricing in the Mt. Gox supply overhang. 

“Currently, Bitcoin approaching $63,000 is a positive indicator, but breaking past $73,000 by the summer’s end would require sustained bullish momentum and positive market sentiment,” they added.

Nevertheless, even if Bitcoin fails to reach a new all-time high this summer, the analysts added that BTC could reach new highs by at least Q4 2024, aligning with post-halving cycles.

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Author: Gino Matos