Bitcoin (
BTC
) is poised for a significant rally, potentially surpassing $90,000 in the coming weeks. This is supported by various technical, on-chain, and fundamental indicators.
After reaching a record high of $69,210, BTC’s price has entered a consolidation phase, forming a triangular pattern resembling a bull pennant. This pattern is seen as a bullish continuation signal by traditional analysts, suggesting that prices could rise by the same magnitude as the previous uptrend. Typically, a breakout from this pattern is accompanied by increased trading volume.
Given the current consolidation phase, along with the recent all-time highs and other factors discussed below, the next target for BTC could be around $92,500, representing a 35% increase from current levels.
One factor contributing to Bitcoin’s price uptrend is the increasing capital inflows into US-based exchange-traded funds (ETFs). These ETFs now hold over $53 billion in reserves, compared to $27.95 billion at their launch in January. Higher inflows into an ETF indicate that more investors are buying shares, which in turn increases demand for the underlying assets. As a result, the fund manager may need to purchase additional assets to ensure the ETF accurately reflects the index composition or sector it tracks.
The rising ETF inflows come ahead of the Bitcoin halving, which has historically been associated with price increases. The halving event occurs when the mining reward is cut in half, and it often leads to a surge in prices before and after the event.
Furthermore, Bitcoin’s current price action is reminiscent of a historical fractal observed before its rally to $69,000 in November 2021. This similarity suggests that another upward move could be imminent, similar to the previous bull cycle, albeit with some differences. If history repeats itself, BTC could target prices above $75,000.
It is important to note that this article does not provide investment advice or recommendations. Investing and trading always involve risks, and readers should conduct their own research before making any decisions.