Bitcoin (BTC) traders are predicting splendid bullish price action as BTC surpasses the $65,000 mark. Multiple Bitcoin price metrics support this optimistic outlook, indicating a highly bullish “post-halving growth trajectory.”
On July 16, Bitcoin’s price rallied to $65,000, alleviating traders’ fears over the German government’s potential BTC sell-off. However, concerns linger about a possible price drop to $58,000 as Mt. Gox began moving $6 billion worth of coins from its cold wallet to various addresses. Despite these fears, market analysts maintain that Bitcoin’s “post-halving” growth trajectory remains intact.
The Coinbase premium has turned positive, a key indicator for Bitcoin (BTC) traders. This metric, which measures the price gap between Bitcoin on Coinbase Pro and Binance, has risen to 0.1%, levels last seen in mid-May. This shift suggests stronger spot buying on Coinbase compared to other exchanges. According to FalconX Research, a positive Coinbase Premium Index is often a precursor to long-term support for Bitcoin.
David Lawant, head of research at FalconX, believes that Bitcoin price is gearing up for a “massive rally” similar to the one witnessed between October 2023 and March this year, when BTC surged approximately 170% from $26,000 to a new all-time high of $73,835. Lawant notes, “Something tells me the next 6-12 months will be splendid — and probably volatile.”
Bitcoin (BTC) Traders: Increased Institutional Investment in Bitcoin
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Increased capital flows into Bitcoin investment products also support the bullish outlook. Author and independent analyst Timothy Peterson highlighted the continued inflow of Bitcoin investment products. “Cumulative Net ETF Flows reached a new ATH last week,” Peterson declared on July 15. This refers to the seven-day streak of positive flows into US spot Bitcoin ETFs, which have brought cumulative inflows to a record high of $16.11 billion, according to data from Farside Investors.
Peterson estimates Bitcoin’s price at $71,000 based on this metric, indicating that rising demand from institutional investors is likely to drive BTC prices higher. Bitwise Senior investment strategist Juan Leon emphasized that the over $16 billion inflows into spot BTC ETFs in six months since their launch on January 11 are significant. “Strong institutional demand for #BTC is being driven not only by spot BTC ETFs (>$15B inflows), but also by CME BTC futures, which hit new highs in Q2,” Leon explained.
Additionally, the latest Digital Asset Fund Flows Weekly Report by CoinShares revealed that Bitcoin asset investment products saw the fifth-largest weekly inflows on record. Logging $1.347 billion during the week ending July 12, year-to-date inflows reached a record $17.221 billion. CoinShares head of research James Butterfill attributed these high inflows to the recent drawdown in BTC price to $53,000, suggesting investors capitalized on Bitcoin’s “price weakness” to increase their positions. “We believe price weakness due to the German Government Bitcoin sales and a turnaround in sentiment due to lower than expected CPI in the US prompted investors to add to positions,” Butterfill said.
Bitcoin (BTC) Traders: Technical Analysis Points to Continued Growth
From a technical perspective, Bitcoin’s latest retest of $65,000 signifies a significant trend change. Anonymous Bitcoin analyst Rekt Capital noted that Bitcoin has successfully reclaimed the “Post-Halving ReAccumulation Range.” This range refers to BTC’s trading behaviour in the weeks following the Bitcoin halving event in April. “The importance of this reclaim cannot be understated,” Rekt Capital stated on July 16.
Analysts at crypto data provider Ecoinometrics indicated that three months after the halving, Bitcoin was trading at the bottom of the growth range. They set ambitious targets for Bitcoin’s price, declaring, “Well, assuming the same growth rate as the past three cycles, we would expect one BTC to be worth between $140,000 and $4,500,000 per coin, starting from $63,000.”
In conclusion, Bitcoin’s post-halving growth trajectory and robust market fundamentals point to a promising outlook for BTC. With institutional investments flowing in and technical metrics showing positive signs, Bitcoin (BTC) traders have ample reason to forecast a splendid bullish price action as Bitcoin continues to climb.
Despite fears of a potential price drop, Bitcoin (BTC) traders remain optimistic about the cryptocurrency’s future. The positive shift in the Coinbase Premium Index, increasing institutional investment, and strong technical indicators suggest that Bitcoin’s bull market is still underway. As always, stay connected to The BIT Journal for more updates on Bitcoin and other cryptocurrencies.
