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Bitcoin price looks ready to exceed $90,000 in the upcoming weeks due to a mix of supportive technical, on-chain, and fundamental indicators. After reaching its all-time high of $69,210, Bitcoin‘s price entered a consolidation phase, moving sideways within a triangular formation reminiscent of a bull flag.
What to Expect on the Bitcoin Front?
Analysts in the traditional finance sector view bull flags as continuation patterns that can push prices up to the height of the previous uptrend. This breakout typically comes with an increase in trading volume. Particularly after reaching all-time highs this week, the consolidation of prices and other reasons discussed below suggest that Bitcoin has a high chance of breaking out. Therefore, the next target could be around $92,500, a 35% increase from current levels in the following weeks.
The recent price increase of Bitcoin coincided with increased capital inflows into US-based exchange-traded funds (ETFs). The reserves of these ETFs, which were $27.95 billion at their launches in January, exceeded $53 billion as of March 7.
Higher inflows into an ETF fund indicate that more investors are buying shares of the ETF, which in turn increases demand for the underlying assets. This is because the fund manager may need to purchase additional assets to ensure the ETF accurately reflects the composition or sector of the index it tracks. Market analyst Timothy Peterson commented on X:
“The continuation of Bitcoin Spot ETF approvals seems to have initiated an accumulation that could take Bitcoin to $100,000 by October 2024.”
Moreover, the increase in ETF inflows occurred weeks before Bitcoin’s halving event. Historically, halving events have been associated with price increases before and after the mining reward is cut in half.
Prominent Analyst’s Bitcoin Commentary
According to market analyst Jelle, Bitcoin’s current price action resembles a historical fractal before the price surge towards $69,000 in November 2021. These similar declines around all-time high prices, despite some differences, suggest that the next leg up could be just around the corner, as in the last bull cycle. The famous analyst shared the following statements through X:
“Bitcoin is moving similarly to the all-time high breakout of 2020. A failed breakout with a sharp correction, followed by some consolidation and a successful higher breakout.”
If history repeats itself with a successful rise, Bitcoin’s price could target levels above $75,000.
