Original author: Mary Liu, BitpushNews

Bitcoin is off to a strong start to the week as the halving approaches, surging above $72,000 in early trading on Monday, within 3% of its all-time high of $73,750. After trading near $69,400 over the weekend, Bitcoin bulls started moving higher in the early hours of Monday morning, breaking through the $71,000 resistance and hitting a high of $72,780 shortly after 8 a.m. ET, market data shows. . As of press time, Bitcoin was trading at $71,845, a 24-hour increase of 3.5%.

Other coins gaining ground on Monday include Ethereum (up 8%), meme coin Dogwifhat (up 18%) and Pepe (up 10%).

Data released by Coinshares on Monday showed that digital asset investment products recorded $646 million in inflows last week. Bitcoin-related investment products remained in focus, with inflows totaling $663 million, while outflows from investment products shorting Bitcoin totaled $9.5 million for the third consecutive week, indicating a slight capitulation among bearish investors.

James Butterfill, head of research at Coinshares, said: Year-to-date inflows have reached an all-time high of $13.8 billion, currently well ahead of 2021s $10.6 billion.

On-chain analysis company Santiment believes that ETF trading activity remains at a relatively active level. Analysts at the company said: Bitcoin ETF trading volume has not slowed down four weeks after BTC broke through new highs. In G BTC, IBIT, F BTC, ARKB, BTC O, BITB and HODL, trader activity remains significantly higher than The turning point started when retail trading started pouring in at the end of February.”

They added: “High activity should continue before the halving on April 19, but it will be interesting to see whether ETF trading volume and on-chain trading volume will decline directly after the halving.”

Stablecoin activity suggests bulls are preparing for a rebound

Markus Thielen, head of research at 1 0x Research, said that while Bitcoin price has been trading sideways and consolidating since early March, it may soon resume its climb.

After being sharply bullish since January 25, we became cautious a month ago (March 8) as forward returns appeared unpredictable based on the markets technical setup, analysts said in a market update on Monday. Trading (cryptocurrency) is about risk reward and knowing when to bet big/small, and the last thirty days have really been a time for small bets. But that will change soon.”

Thielen noted: “Bitcoin traded in a symmetrical triangle pattern last month, and according to some historical analysis, 75% of triangle patterns will see a (bull market) continuation pattern and higher prices.”

Thielen said stablecoin trading volumes can be a better predictor of future conditions than just looking at ETF flows or futures data.

He said: “In the past 30 days, we have seen ETFs record net inflows of approximately $5 billion, and more noteworthy is that Tether has net inflows of $6.9 billion and Circle has minted approximately $3 billion, for a total of 100 Billions of new funds are coming in via stablecoins. While Bitcoin ETF flows attract media attention, in contrast to ETFs, stablecoins are minted twice as much and may only go long. We recommend reducing exposure to Bitcoin ETFs The fluid focus on stablecoin issuers is something to watch and will drive this market higher.”

Thielen concluded: “While we expressed concerns about weak ETF flows, the baton has been passed to stablecoins. Tether recorded a seven-day mint signal of $2.4 billion, one of the highest since the beginning of this bull market. , fiat currencies are accelerating into the cryptocurrency space, and with a symmetrical triangle breakout imminent, we want to be bullish.”

Thielens analysis shows that based on the current formation, the triangle line pattern met on April 18. If it is a bullish breakout, Bitcoin may climb above $80,000 in the coming weeks. Buy at 69,280 points Entering the trade with a stop loss of 65,000 seems appropriate.

Many cryptocurrency traders expect the Bitcoin halving event to be a critical moment in 2024, with a major impact on the cryptocurrency market. However, analysts at Steno Research expect this to be a buy the rumor, sell the news affair. Steno Research predicts that the value of BTC will surge ahead of the halving event. However, within the first 90 days after the halving, its value may fall below the halving price.

According to data provided by Alternative, with only 11 days left until the Bitcoin halving, sentiment in the crypto ecosystem is still in the realm of extreme greed. The current overall market value of cryptocurrencies is US$2.69 trillion, and Bitcoin’s dominance rate is 52.4%.