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Bitcoin’s Journey to $80K: 5 Key Insights This Week

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Bitcoin's Journey to $80K: 5 Key Insights This Week

Bitcoin (BTC) is beginning the second week of April in a bullish manner, surpassing $70,000 and nearing its all-time high. Traders are anticipating further upward movement in price, and although volatility may continue, all eyes are on Bitcoin’s network fundamentals and the upcoming block subsidy halving. Bitcoin’s next halving, which reduces the rewards per block by 50%, is only ten days away, and miners are preparing for this event. Network difficulty is expected to reach new record highs this week. Market sentiment is currently cool as the chances of an interest rate cut from the US Federal Reserve decrease.

As the new week begins, Bitcoin has already climbed to $72,000. This surge occurred during the Asian trading session and was driven by spot buyers who are eager to purchase BTC. Spot flows are crucial for maintaining bullish momentum, and traders are closely watching buy volume and spot flows this week to sustain BTC’s price above $70,000 in the near term. Some traders expect a retracement back to $68,000 before reaching new highs at $80,000. Two gaps in CME Group’s Bitcoin futures market at around $64,000 and $68,500 are being closely monitored.

In terms of macroeconomic data, the Consumer Price Index (CPI) and Producer Price Index (PPI) prints for March in the US will be released soon. This data will provide insight into the Fed’s views on rate cuts. While the US appears comfortable with a data-driven approach to cuts, Europe and the UK are considering reducing rates sooner. Bitcoin miners, Are preparing for increased costs following the halving. Mining costs are expected to double by the end of the month, but some analysts believe that revenue flows will be maintained due to Bitcoin Ordinals and increasing transaction fees.

Despite recent consolidatory price action, Bitcoin’s network fundamentals remain strong. Mining difficulty is set to reach a new all-time high, and the mining hash rate is practically at its highest ever seen. Preparations for the halving have been made by various sources, including Bitdeer Technologies, which plans to increase mining output sixfold. Bitcoin’s long-term holders (LTHs) are becoming more active sellers at current prices, but this is seen as normal and should not outweigh buying pressure in the market. Historical trends show that LTH entities tend to shed around 14% of their BTC supply during bull markets, and so far, less than half of this has been sold.

Bitcoin is starting the second week of April on a bullish note, nearing its all-time high and displaying strong network fundamentals. Traders are closely watching price movements, network difficulty, and the upcoming halving. Macroeconomic data and the sentiment of central banks are also key factors to monitor in the coming days.

5 thoughts on “Bitcoin’s Journey to $80K: 5 Key Insights This Week

  1. The market sentiment is cool, and that’s a good sign! Let’s keep it that way! 😎✨

  2. Historical trends showing that LTH entities tend to shed BTC during bull markets. Stay calm, it’s normal!

  3. The second week of April is off to a bullish start! Exciting times ahead! 🚀🌟

  4. Bitcoin’s network fundamentals may be strong, but it’s still too risky for my liking.

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