The Bitcoin “Big Money Algos” Are Here: Will BTC Breach $70,000?

Mike Alfred, a Bitcoin investor and crypto commentator, thinks the “big money algos” are back and predicts the world’s most valuable cryptocurrency will rally to record fresh February 2024 highs but retest all-time highs. This uptick, Alfred says, is before the network finally halves its miner rewards. 

Taking to X on February 20, the investor notes that “big money algos just flipped on” and that the uptrend remains. By the time Alfred posted on X, BTC was headed towards the $53,000 before slipping back slightly to around the $59,000 level.

However, the uptrend remains when looking at the candlestick arrangement in the daily chart. Bitcoin has been increasing, defying gravity for the better part of February. At spot rates, analysts, including Alfred, expect the coin to push higher, breaking above $53,000, a stubborn resistance level. If this happens, and considering the sharp breakout, it is likely that buyers will push prices higher towards $60,000 and potentially towards $70,000, as the investor predicts.  

Even so, it remains to be seen whether the uptrend will be sustained. When writing, the breakout has been met with solid rejection. Notably, there appear to be “sell walls,” which are large sell orders parked at around $53,000. Still, optimistic bulls expect a triumph, marked by a comprehensive close above this psychological round number.

The crypto community, including the investors, is bullish on Bitcoin. So far, anticipation has been building up for even more gains ahead of halving. Bitcoin halving, an event set at the protocol level, will half miner rewards, possibly inducing a supply shock, assuming the current demand increases.

Presently, Bitcoin supporters believe the network will continue to find more adoption as a medium of exchange and a store of value. With the coin becoming deflationary after halving, the consensus is that prices, guided by historical performance, will rise. 

While optimism reigns, Bitcoin remains volatile despite recent institutional participation. Through the spot Bitcoin exchange-traded funds (ETFs), Wall Street players have found a regulated product to channel billions into Bitcoin, reading from the amount of coins scooped in the recent past.

Still, whether the uptrend will continue depends on other macro factors, including monetary policy status in the United States. In March, the United States Federal Reserve (Fed) will guide the interest rate regime. It is a decision that may lift BTC to new levels as a store-of-value asset or force prices lower as capital rotates that to the greenback.

Feature image from Shutterstock, chart from TradingView