The Upcoming Bitcoin Boom: How Technical Analysis and Crypto Market Factors May Drive a Bullish Streak

By: Isha Das

Despite the recent market volatility and struggle to sturdy its grasp over the $70,000 mark, Bitcoin's ongoing bullish streak could be bolstered through the influence of the DeFi protocol, Ethena Labs. The protocol aims to navigate the unstable market through a constrained approach towards over-leveraging in derivatives markets along with the reduction of spot supply.

Furthermore, survey findings from Deutsche Bank present a growing confidence in Bitcoin's thriving future, with almost 40% of respondents anticipating the cryptocurrency's continued success in the coming years. Simultaneously, however, the cryptocurrency has been approaching two key on-chain price levels, the Market Value to Realized Value (MVRV) ratio and the 'Vaulted Price', which previously marked the advent of the bull run in 2021. The interaction with these levels in the present scenario could potentially trigger a similar euphoric run.

While Bitcoin's Halving is inherently integral to its protocol, esteemed crypto analyst Willy Woo’s analysis indicates that this event could also greatly impact the asset's price dynamics, as it would reduce Bitcoin's annual supply growth rate from 1.7% to 0.85%, thereby increasing its scarcity. Notably, crypto miners have been strategically depleting inventory in this rising market, diverging from the strategy of accumulation seen prior to the 2020 Halving.

Furthermore, the Bitcoin mining inventory is currently at a three-year low, setting strategic groundwork ahead of the looming Halving event, which could trigger considerable changes in the crypto arena.