Now is the time to load up on Bitcoin before things really get going

Bitcoin (BTC USD) has been one of the best performing assets over the past year, rising more than 135% at the time of writing. The move is due to an imbalance between supply and demand caused by increasing demand for spot Bitcoin ETFs and limited supply due to the recent halving.

Analysts and observers have set bullish price targets for digital assets, but Bitcoin has yet to recover and consistently reach new highs. Investors have time to increase their exposure before the surge begins. This is why I am increasingly optimistic about Bitcoin’s prospects.

Record high Incoming

Bitcoin rose sharply above its 200-day moving average (SMA) in October, reaching record highs of over $73,000.

The rising SMA suggests strong bullish momentum and aims to surpass its previous high of $49,452 in February 2022.

Currently, BTC is trading at $64,300 with the SMA at $47,909, an important point for traders as it typically follows the most intense bullish cycles and surpasses previous SMA peaks.

In November 2020, six months after the third halving, Bitcoin’s 200-day SMA peaked above $10,320. By mid-April 2021, it had increased 4.5 times to $63,800.

After hitting new highs in December 2016, the average rose 2,000% to nearly $20,000 in 12 months. After the second and first halvings, similar rapid increases occurred in 2012 and 2016.

Although past data is no guarantee of future results, some patterns repeat themselves. Bitcoin’s bear market ended in November 2022 and preceded a rally historically seen 15 months before the halving.

Bitcoin’s fourth halving took place and the block rewards halved to 3,125 BTC. Analysts predict The Federal Reserve’s potential rapid interest rate cuts due to rising national debt could support an extended uptrend in cryptocurrencies.

BTC accumulation this year

Santiment Analysts reported a BTC value of $17.5 billion. Whales with 1,000 to 10,000 Bitcoin currently hold 1.24% of the total 21 million supply.

These analysts noted that institutional investors could reduce industry volatility, resulting in less selling pressure as prices rise. These players supported Bitcoin’s growth ahead of the halving, which was expected to have a significant impact on its value.

Traders are a whole different beast and could buy and sell multiple times on a given day, which is why this investor base is so important.

Ki Young Ju, CEO of CryptoQuant, observed that new whales invested almost twice as much in Bitcoin as older ones. He categorized whales as those who own more than 1,000 BTC and have nothing to do with exchanges or miners.

New whales owned coins less than 155 days old, activated by factors such as US spot crypto ETFs and the April halving.

Strike App and European customers

There are other recent catalysts that investors are calling bullish for Bitcoin over time. Strike, a Bitcoin-based payment app, expanded to Europe, Facilitating BTC transactions. The company recently launched in Africa and operates in Asia, the Caribbean and Latin America.

Strike is a product of Chicago-based Zap Solutions, led by entrepreneur Jack Mallers. Recently, this app has come to Europe and offers huge opportunities for Bitcoin adoption.

Strike works like Cash App or PayPal (NASDAQ:PYPL), but uses the Bitcoin blockchain for faster and cheaper transactions.

In Europe, customers can buy, sell and withdraw BTC directly with Euro deposits via SEPA. In some regions, they can receive funds in Bitcoin, Euro or USDT stablecoin.

BTC remains a buy

Relying solely on predictions is risky and the future value of Bitcoin is uncertain. Despite this reality, Bitcoin has consistently outperformed other assets.

Recent spot launches of Bitcoin ETFs have been extremely successful, and there is a clear imbalance between supply and demand that only seems to be increasing.

Although cryptocurrencies are volatile assets, you should consider investing a portion of your portfolio in Bitcoin.

It is the clear leader in this space for good reason and has enabled many investors to outperform by holding relatively small positions in their portfolios over long periods of time.

At the time of publication, Chris MacDonald did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication policies.