As a seasoned researcher who has closely followed the cryptocurrency market for over a decade now, I find myself increasingly intrigued by the recent developments surrounding Bitcoin. The potential entry of institutional giants like BlackRock into the Bitcoin market, coupled with Mihir’s forecast of a $120K price point, paints a picture of an exciting future for this revolutionary digital asset.
Following BlackRock’s application for a spot ETF, Bitcoin has been under intense scrutiny. Since then, options for institutional clients involving BTC have received approval. BlackRock further suggests that with the US national debt nearing $35 trillion, it may entice institutional investors towards Bitcoin. Mihir, a notable crypto analyst, predicts that if Bitcoin successfully breaks free from its multi-year consolidation pattern, its value could potentially reach $120K.
Analyst Forecasts Bitcoin Price Could Hit $120K
As a researcher delving into the realm of cryptocurrency analysis, I’ve recently found myself reflecting upon Mihir’s latest insights regarding the current Bitcoin price dynamics on platform X. His post presents an intriguing multi-year cup-and-handle technical configuration that seems to be inching towards a potential breakout.
In simpler terms, a “cup-and-handle” pattern is a bullish consolidation where we first see a rounded base (the “cup”) followed by a smaller continuation phase that slopes downwards before leveling off (the “handle”). This pattern occurs just below a horizontal resistance line. Once this resistance line is flipped to become a support, it suggests the start of an upward breakout. The target price for this setup can be determined by measuring the depth of the “cup” and adding it to the breakout point. As per Mihir’s prediction, the Bitcoin price could reach $120K using this method.
BlackRock Notes $35 Trillion US Debt Pile Could Drive Institutions To BTC
Following BlackRock’s filing for a spot Bitcoin ETF in June 2023, there’s been growing interest in Bitcoin within traditional financial communities. Amidst concerns about an approaching recession and potential US Dollar devaluation, BlackRock has expressed worries over the $35 trillion of US debt. This massive debt burden could stimulate institutional investment in Bitcoin.
Because Bitcoin has been stable over a six-month period, the amount of money flowing into spot Bitcoin ETFs has decreased in size. The largest influx of funds occurred in July at $886 million, which is the most significant inflow over the past two months. According to data from SoSo Value, the total net inflow for spot Bitcoin ETF since its launch on January 10th amounts to $17.69 billion.
Institutions Accumulate Bitcoins
Based on data from Santiment, the wallets containing between 100 to 1,000 Bitcoins and 10,000 to 100,000 Bitcoins are amassing Bitcoin. These investors, who typically have over $100K, are often categorized as smart money or institutions because such a large sum is beyond the reach of most individual traders. However, not every wallet holding over $100K is significant. Some could belong to exchanges or cryptocurrency platforms and should be disregarded. In this analysis, we’ve excluded wallets containing 1,000 to 10,000 Bitcoins because historically, these investors have not demonstrated foresight and thus offer no valuable insights.
Regarding those who own between 100 to 1,000 or 10,000 to 100,000 Bitcoins, these investors wisely bought before the market surge and sold near record highs, demonstrating good judgment. They amassed their BTC during the second and third quarters of 2021 and 2022 and cashed out as Bitcoin’s price reached new peaks. Similarly, they are now buying again, suggesting they anticipate a significant upward trend. Traditionally, the fourth quarter has been a prosperous period with an average return of approximately 98%, aligning with top analysts’ predictions for Bitcoin’s price to reach $120K per BTC.
As we approach the final quarter of the year, I’m optimistic about Bitcoin’s trajectory. The upcoming U.S. Presidential elections in November, coupled with growing institutional interest, seems poised to boost the first cryptocurrency, potentially surpassing the $100K mark.
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2024-09-23 16:34