Bitcoin Eyes Record Green Run, Fueled by ETF Inflows and Bullish Sentiment

Bitcoin is poised to potentially conclude a historic seven-month streak of positive monthly performances, requiring a March close above $61,130. The current price of $63,800 suggests this is feasible. However, a pre-halving correction is still evident, with Bitcoin falling from $73,800 to below $61,000. While some analysts anticipate a surge to $74,000 before Q1's end, others believe a further correction may occur within the next 26 days leading up to the halving.

Bitcoin Poised to Extend Green Streak, Buoyed by ETF Inflows and Bullish Sentiment

Bitcoin is on track to extend its record-breaking seven-month winning streak, buoyed by the steady inflow of capital into spot Bitcoin exchange-traded funds (ETFs) and a prevailing bullish sentiment ahead of the upcoming halving event.

As of March 23, 2024, Bitcoin was trading at approximately $63,800, hovering above the $61,130 threshold that would ensure a continuation of its green run. This would mark the first time in Bitcoin's history that it has posted seven consecutive monthly gains.

Historically, Bitcoin has experienced corrections during the pre-halving period, a time leading up to the reduction in the issuance of new Bitcoins. However, according to Matthijs de Vries, founder of AllianceBlock, the presence of ETFs is mitigating this concern.

"The steady inflow into spot Bitcoin ETFs is providing a significant boost to the price from its current level of $63,878," said de Vries. "With Bitcoin's halving cycle nearing its end, bullish sentiment will persist. I anticipate a Bitcoin price of $74,000 before the end of Q1."

Despite de Vries' optimism, there are indications that a pre-halving correction may still be underway. The Bitcoin price recently declined from $73,800 to below $61,000, although it has since recovered some ground.

Rekt Capital, a prominent cryptocurrency analyst, suggests that Bitcoin remains in the "Danger Zone" where historical pre-halving retracements have occurred. "Anything can still happen in the next 26 days or so until the halving," the analyst tweeted.

However, data from Willy Woo, a respected on-chain analyst, reveals a contrasting trend. Woo notes that ETF investors have sold during the recent Bitcoin price dip, while investors on the network have actually increased their holdings.

"ETF investors are showing that they are beginners," said Woo. "During the first dip, the ETFs saw $1.6 billion in outflows, while the Bitcoin network saw $1.1 billion in inflows. This means that many people with their own wallets bought the dip."

The influx of retail investors into Bitcoin during the recent dip could potentially provide a catalyst for the continuation of the bull market. Whether retail participation will be sufficient to propel Bitcoin out of its current correction and sustain its upward trajectory remains to be seen.