Bitcoin, the leading cryptocurrency, is poised for a price increase that could help the cryptocurrency markets recover from recent losses. The current bull run of Bitcoin is largely influenced by institutional investors, and the market is witnessing the impact of this. Last week, there was a significant $63 million inflow into the Grayscale Bitcoin Trust (GBTC).
The launch of spot Bitcoin exchange-traded funds (ETFs) has provided substantial 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.
Traditionally, demand for Bitcoin tends to increase after the halving, as it signals an upward trend. In the previous bull cycle of 2020-2021, this state of euphoria was reached eight months after the halving. However, this time it occurred about six months earlier. With ETFs consistently boosting demand, the recovery could progress rapidly.
Notably, this demand is not limited to institutions, as individual investors are also likely to join in. The Reserve Risk indicator, which measures investor confidence, is currently in a positive zone. Experts believe that with its low price, Bitcoin offers a favorable risk-reward ratio for investment.
If Bitcoin holders see the potential for profit, they may start accumulating more, which could further accelerate the recovery. Currently, Bitcoin is trading at $64,140, testing the upper boundary of the flag pattern it has been stuck in since March. Analysts predict a 45% rise potential, setting the target at $92,505.
However, experts have even higher aspirations, aiming to surpass Bitcoin’s all-time high of $73,000. This could happen if the support base of $65,000 is secured and BTC breaks out of the current pattern. Conversely, if the breakout fails, Bitcoin’s price could drop to $61,000. Losing the mentioned support would result in BTC testing the lower trend line of the flag pattern, potentially reaching as low as $56,600 and invalidating the bullish thesis.
Disclaimer: The information provided in this article does not constitute investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risk, and should conduct their own research.
