Bitcoin (BTC) is poised for a significant rally in the coming weeks, with a potential price target of $90,000 or higher. This prediction is based on a combination of technical, on-chain, and fundamental indicators.
After reaching a new all-time high of $69,210, BTC’s price has entered a consolidation phase, forming a triangular pattern resembling a bull pennant. Traditional analysts view bull pennants as bullish continuation patterns that often lead to price increases of the same magnitude as the previous uptrend. A breakout from this pattern is typically accompanied by an increase in 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 of the factors supporting BTC’s price uptrend is the increasing capital inflows into U.S.-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 the demand for the underlying assets. This demand may require the fund manager to purchase additional assets to maintain accurate representation of the index or sector being tracked.
The timing of these ETF inflows is noteworthy, as they come ahead of the Bitcoin halving event. Historically, halving events have been associated with price increases before and after the mining reward is halved.
Furthermore, BTC’s current price action closely resembles a historical fractal that occurred before its rally to $69,000 in November 2021. This similarity suggests that the next upward movement may be imminent, similar to the previous bull cycle, albeit with some differences.
Market analyst Jelle highlights the similarities between the current price consolidation and the consolidation before the 2020 all-time high breakout. 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. Readers should conduct their own research and exercise caution when making investment decisions.