The bull market is replenishing 'ammunition', and the two major stablecoins are issuing an additional US$10 billion in one month

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. Market data shows that 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. At press time, Bitcoin was trading at $71,845, up 3.5% in 24 hours.

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 those betting against Bitcoin saw outflows total $9.5 million for the third consecutive week, signaling a slight capitulation among bearish investors.

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

On-chain analytics firm Santiment believes that ETF trading activities remain 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. Across GBTC, IBIT, FBTC, ARKB, BTCO, BITB and HODL, trader activity is still significantly higher than that of retail investors in late February. The turning point that started after transactions started pouring in."

They added: "High activity should continue before the halving on April 19, but will ETF trading volume and on-chain trading volume continue in the lead-up to the halving on April 19? It would be interesting to see a drop directly after the halving."

Stablecoin activity suggests bulls are preparing for a rebound

Markus, Head of Research at 10x Research Thielen said that while Bitcoin price has been trading sideways and consolidating since early March, it could soon resume its climb.

Analysts said in a market update on Monday: "After being sharply bullish since January 25, we became cautious a month ago (March 8) as the market's technical set-up was far away. Returns may seem unpredictable, trading (cryptocurrencies) is about risk reward and knowing when to bet big/small, and the past thirty days have truly been a time for small bets. But that will change soon."

Thielen pointed out: "Bitcoin has been trading in a symmetrical triangle pattern last month, and according to some historical analysis, 75% of triangle patterns will see a (bull market's) continuation pattern and higher prices."

Thielen said stablecoin trading volumes can be a better predictor of future conditions, rather 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 what is more noteworthy is that Tether has a net inflow Of the $6.9 billion, Circle minted approximately $3 billion, with a total of $10 billion in new money coming in through stablecoins. While Bitcoin ETF flows have attracted media attention, as opposed to ETFs, stablecoin mints are two times times, and may only go long. We recommend paying less attention to Bitcoin ETF flows. Stablecoin issuers are objects to watch and will drive this market higher."

Thielen concluded: "Although we express concerns about weak ETF flows, but 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, and fiat currencies are accelerating into cryptocurrencies. In the field, with the symmetrical triangle breakout imminent, we hope to be bullish."

Thielen's analysis shows that based on the current formation, the triangle line pattern "met" on April 18, if it is a bullish breakout, Bitcoin may With the price climbing above $80,000 in the coming weeks, buying at 69,280 with a stop at 65,000 seems "appropriate".

Many cryptocurrency traders expect the Bitcoin halving event to be a pivotal moment in 2024, with a significant 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.”

With just 11 days left until Bitcoin’s halving, sentiment in the crypto ecosystem remains in “extreme greed” territory, according to data provided by Alternative. The current overall market value of cryptocurrency is US$2.69 trillion, and Bitcoin’s dominance rate is 52.4%.

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