The leading cryptocurrency, Bitcoin (BTC), is expecting a price increase that could aid the cryptocurrency markets in recovering from their recent losses. The price of Bitcoin is largely dependent on institutions for the current bull run, and the market is witnessing the effects of this. Last week, Friday marked the first instance of a $63 million inflow into the Grayscale Bitcoin Trust (GBTC).
Bitcoin Boosted by ETF Launch
The launch of spot Bitcoin exchange-traded funds (ETFs) has provided significant support to the bull run. This can be seen in the net unrealized profit/loss indicator, which currently stands above 0.5, indicating market excitement.
Since the halving indicates an upward trend, demand tends to increase following the reward cut. In the last bull cycle of 2020-2021, this state of euphoria was achieved eight months after the halving. However, this time it occurred about six months earlier. Therefore, with ETFs continuously boosting demand, recovery could progress swiftly.
However, this demand is not limited to institutions, as individual investors are likely to join the bandwagon. This is indicated by the Reserve Risk indicator, which is currently in a positive zone. This indicator measures the general confidence exhibited by investors. According to experts, with its low price, BTC offers a favorable risk-reward ratio for investment.
Bitcoin Targets $92,000!
Ultimately, if BTC holders see profit potential, they might start accumulating, which could accelerate recovery. At the time of writing, Bitcoin was trading at $64,140, testing the upper boundary of the flag that the cryptocurrency has been stuck in since March. Analysts display this bullish formation with a 45% rise potential, setting the target at $92,505.
However, experts aim to surpass Bitcoin’s all-time high of $73,000. This could happen when the support base of $65,000 is secured, and BTC breaks out of the pattern. On the other hand, if the breakout fails, Bitcoin’s price could drop to $61,000. Losing the mentioned support would result in BTC testing the flag’s lower trend line, potentially reaching as low as $56,600 and invalidating the bullish thesis.
