The chief analyst of Bitget Research, Ryan Lee, made a couple of predictions for March 2024 on Bitcoin and Ethereum.
These are analyses that take into consideration the global context and the possible evolution of the price of the two main cryptocurrencies, BTC and ETH, during the current month.
Bitget: Bitcoin forecasts
Lee points out that on February 27th a new upward movement cycle started on the price of Bitcoin, with the surpassing of the previous annual high at $57,000.
Furthermore, the daily trading volume of BTC has risen to around 80 billion dollars on spot markets, while the nine Bitcoin ETFs in the USA have reached a new all-time high trading volume of 3.2 billion dollars.
The fact is that institutional sentiment is bullish and strong, and there are only about fifty days left before the halving. In addition, there are also expectations of an interest rate cut by the Fed around mid-year.
Lee comes to the conclusion that Bitcoin has found support at $50,000, and that in March the volatility could remain high enough to potentially allow it to challenge historical highs.
In fact, the highest price ever reached by BTC in dollars was $69,000 on November 10, 2021, and currently according to Lee himself the upper resistance would be between $60,000 and precisely the fateful $69,000, with the lower support between $48,000 and $52,000.
The key level therefore is precisely $69,000, which is both the current maximum upper resistance and the all-time high of 2021.
Since volatility is expected to remain high even in March, a jump from current levels to $69,000 seems within reach for BTC.
The forecast on Ethereum
Lee highlights how the current price of ETH is a bit weaker compared to BTC, but it is gradually picking up speed.
The ETH/BTC exchange rate has exceeded 0.06, driven by Bitcoin’s rise of over 10% on February 27 followed by a slight retracement. However, it has increased by over 13% in the last half of the month.
However, in the first quarter of 2024, the Dencun update should be completed, with various Layer 2 projects and reorganization that could boost ETH.
Therefore in March Ethereum for Lee could finally break through the $3,500 wall, with support set at $3,100 and a concentrated chip area at $2,900.
Furthermore, there is anticipation for the possible approval in May of ETH spot ETFs in the USA, and this anticipation in March could strengthen Ethereum compared to Bitcoin.
So according to Lee ETH could even reach to test the range of $4,300, with the actual range depending on market liquidity and should fluctuate between $2,500 and $3,500 for most of the time.
Bitcoin and Ethereum price predictions from March onwards: Bitget analyst speaks
Lee also adds that, according to past cycles, there is also the possibility that BTC may experience further growth to reach a peak within six months to a year and a half after the halving. ETH could follow this trend.
Furthermore, thanks to the possible entry of the main traditional financial institutions, it is stated that it could also be predicted that the collective forces of the market could push ETH to reach a new all-time high above $4,900 by the end of the year.
It should not be forgotten that the milestone of 2024 is the April Bitcoin halving, which could influence the entire crypto market.
This could mean on one hand a further rise in prices before mid-April, and then maybe a post-halving retracement as if a sell the news were triggered.
However, a few months after the halving, this could start to impact the supply of BTC on the crypto markets, causing the price to rise.
Altcoins could follow a similar trend, as they have more or less always done, overall.
The anomaly
However, it should be specified that in the past a historical high had never been recorded shortly before the halving, because the new highs have always arrived months after the event.
This year from this point of view seems anomalous, but at least the reason is clear.
Indeed, never before had there been spot Bitcoin ETFs on US exchanges that effectively allowed anyone to take a position on the price of BTC.
The strong total capital inflows that have occurred in the last month and a half on these funds are a first absolute, in the 15 years of Bitcoin’s life, and this anomaly is making 2024 very different from the other halving years (2012, 2016 and 2020).
It remains to be seen whether the effect of the halving, months after its advent, will be similar to those of the past, or not.