Bitcoin's Historic Streak at Risk, 'Perfect Storm' Brews for 2024 Surge

• Bitcoin Faces 4% Weekly Loss: A Sharp Contrast to Eight-Week Gain Streak
• Stalled Rally and Profit-Taking
• Examining BTC's Eight-Week Winning Streak
• Predicting Record BTC Prices for 2024
• Anticipation of U.S. Regulatory Approval for Spot Bitcoin ETFs
• Potential for Record Highs: Views from WOO Network and Others

Bitcoin Faces 4% Weekly Loss: A Sharp Contrast to Eight-Week Gain Streak

Bitcoin$42,260 -0.64%'s price has experienced a downturn, valued at $41,800, marking a 4% decrease this week. This slump threatens to break the first eight-week chain of gains seen since 2017. Investors have transferred a substantial net total of $860 million in BTC to exchanges, suggesting they are taking profits, as observed by IntoTheBlock. WOO Network has projected that Bitcoin is expected to reach $75,000 by early 2024, thanks to the potential approval of U.S. spot bitcoin ETF and upcoming halving events.

Stalled Rally and Profit-Taking

Bitcoin's (BTC) rally has come to a temporary halt, potentially putting an end to a historic eight-week growth streak. As of the end of the week, the price of the digital asset hovered around $42,000. The leading cryptocurrency in terms of market capitalization managed to climb back to $43,000 after Monday's 10% sudden decline to $40,000, which came as a result of overly optimistic leveraged wagers on higher prices.

A dovish Federal Reserve projecting rate cuts, coupled with the falling U.S. dollar, facilitated the recovery, but this momentum stalled by the end of the week, causing BTC to drop to $41,500.

On-chain data reveals an extensive profit-taking trend due to stagnating prices. During the week, Bitcoin saw $860 million of net inflows into crypto exchanges, the highest level since March, as reported by analytics firm IntoTheBlock on Friday. This trend typically indicates a selling intention, leading to the conclusion that many investors chose to capitalize on Bitcoin's 65% surge from $27,000 in October.

Examining BTC's Eight-Week Winning Streak

If BTC fails to end the week above $43,800, it would interrupt an eight-week string of gains, marking the longest winning streak since April to June 2017, based on TradingView historical data. As of the week's close, BTC was trading around $42,000, a nearly 4% decrease since the week's start.

Predicting Record BTC Prices for 2024

Despite the recent price dip, experts maintain a positive outlook, anticipating a robust 2024 for Bitcoin backed by numerous investment narratives. Senior Market Analyst at OANDA, Craig Erlam, views the current trading activity as standard, reminding that things don't move in straight lines in the world of trading.

Erlam highlights that market participants expect interest rates in the U.S., U.K., and Europe to drop sharply in the upcoming years, which could favor risky assets compared to the past 18 months of rising rates. He also mentioned the recent all-time high of the Dow Jones Industrial Average as indicative of an increased risk-appetite among investors.

Anticipation of U.S. Regulatory Approval for Spot Bitcoin ETFs

Anthony Rousseau, head of brokerage solutions at TradeStation, believes a pause and determination of a new range is healthy and fosters confidence in risky assets like crypto. He also highlights the rumor of the Federal Reserve easing monetary policy and cutting rates next year.

The most prominent narrative, however, remains the expected U.S. regulatory authorization for spot bitcoin exchange-traded funds (ETFs) and the surge in BTC demand this could trigger. Despite the short-term profit-taking, Rousseau notes that long-term holders, famously known as HODLers, have not begun selling, which restricts Bitcoin's supply further.

Potential for Record Highs: Views from WOO Network and Others

According to Rousseau, We might have the perfect storm brewing for a strong 2024, with the possibility of closing in on all-time highs by the end of 2024." The WOO Network echoes these sentiments, suggesting all-time highs might be achieved even sooner due to spot ETF listings and Bitcoin's upcoming halving event in April, which will cut new BTC issuance by half. They note, We targeted $75k for BTC in early 2024 and believe demand will increase heavily as the ETF and halving narratives combine, leading BTC to develop an additional narrative as a safe haven asset.

Edited by Jonathan Stoker