Bitcoin, the leading cryptocurrency, is poised for a price increase that could help the cryptocurrency markets recover from recent losses. The current bull run in the Bitcoin market is largely driven by institutional investors, and the impact of their involvement is evident. Last week, the Grayscale Bitcoin Trust (GBTC) saw a massive inflow of $63 million, signaling growing interest in Bitcoin.
The launch of spot Bitcoin exchange-traded funds (ETFs) has provided significant support for the bull run. This is reflected in the net unrealized profit/loss indicator, which is currently above 0.5, indicating market excitement. Historically, following the halving event, demand for Bitcoin tends to increase due to the reduced supply. In the previous bull cycle, this surge in demand occurred eight months after the halving. However, this time it happened about six months earlier. With the continuous boost from ETFs, the recovery process could be accelerated.
Interestingly, the demand for Bitcoin is not limited to institutional investors. Individual investors are also expected to join the trend, as indicated by the positive zone of the Reserve Risk indicator. This indicator measures the confidence of investors in general. Experts believe that Bitcoin, with its current low price, offers a favorable risk-reward ratio for investment.
In terms of price targets, if Bitcoin holders see the potential for profit, they may start accumulating more, which could further accelerate the recovery. Currently trading at $64,140, Bitcoin is testing the upper boundary of the flag pattern it has been in since March. Analysts predict a 45% rise potential, setting the target at $92,505.
However, experts are aiming to surpass Bitcoin’s all-time high of $73,000. This milestone could be achieved if the support base of $65,000 is established and Bitcoin breaks out of the current pattern. On the other hand, if the breakout fails, Bitcoin’s price could drop to $61,000. Losing the mentioned support level would result in Bitcoin testing the lower trend line of the flag pattern, potentially reaching as low as $56,600 and invalidating the bullish thesis.
It is important to note that the information in this article should not be considered as investment advice. Cryptocurrencies are highly volatile and carry risks, and investors should conduct their own research before making any investment decisions.