Bitcoin Eyes $90,000: Bull Pennant Formed, ETF Inflows Grow, and Halving on Horizon
Summary:
Bitcoin's price is poised to surge above $90,000 due to supportive technical, on-chain, and fundamental indicators. The digital currency has formed a pattern known as a bull pennant, suggesting a potential price increase. Moreover, recent increases in contributions to U.S.-based Bitcoin exchange-traded funds indicate higher demand for the crypto asset. There are also expectations of a price bump in line with the upcoming Bitcoin halving event, and historical patterns suggest a future significant price increase.
Bitcoin's (BTC) value appears set for an imminent surge, possibly exceeding $90,000, thanks to a combination of supportive technical, on-chain and fundamental facets. Recent consolidation has led BTC's value to move laterally, forming a triangle shape similar to a bull pennant, following its record high of $69,210. Traditional market observers often view bull pennants as potential indicators increasing in value akin to the previous uptrend's magnitude, usually accompanied by heightened trading volume. The possibility of a value increase appears strong as BTC consolidates its position, especially following this week's new record highs and for various other reasons. Consequently, the next target might be around $92,500 in the upcoming weeks, a 35% increase on current levels. Coinciding with the recent progress in BTC pricing is the considerable capital inflow into U.S.-based exchange-traded funds (ETF). With more than $53 billion in reserves as of March 7, significantly more than the initial $27.95 billion when launched in January. When ETF inflow increases, it signals more investors are purchasing ETF shares, which subsequently drives up demand for underlying assets, forcing fund managers to procure additional assets to accurately reflect the composition of tracked indexes or sectors. Market analyst Timothy Peterson noted, "The Bitcoin Spot ETF approval appears to have started a build-up leading us to anticipate BTC reaching $100K by October 2024". Additionally, the rising inflow into ETFs aligns with the forthcoming Bitcoin split. Historical data shows these splits often coincide with value increases before and after the mining reward is halved. Bitcoin's current value activity reflects its historical fractal prior to the surge to $69,000 in November 2021, according to market analyst Jelle. Around all-time high prices, these similar declining and rising values suggest the next upward trajectory might well be imminent, as in the previous bull cycle, albeit with certain variations. "Bitcoin is behaving like the 2020 all-time high breakout," Jelle notes, hinting at a slight decline before consolidation, followed by a successful surge. If such historical trends repeat, the BTC value may well target north of $75,000.
Published At
3/8/2024 11:45:00 AM
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