Bitcoin (BTC), which has formed a bullish trend and attracted institutional investors, could be poised to surge. World’s largest cryptocurrency, Bitcoin (BTC), recently passed the $70,000 mark. It is now poised for a potential breakout and could surpass its current high of $73,750.
Analyst Ali Martinez has a positive outlook after identifying a pattern of ‘bull flags’ on the Bitcoin 4-hour chart. Technical indicators are usually used after a large price increase to signal a time of consolidation and a downward trend. This phase is characterized by a decreasing trading volume, which indicates a temporary pause, rather than an abrupt reversal.
Validating Bull Flag Patterns: Analysis of Bitcoin consolidation phases
This theory was tested by the recent Bitcoin dip under $61,000. This theory was tested by the cryptocurrency’s recent rebound into a range between $67,000 and $70,000. The bull flag pattern proved to be valid. The consolidation phase allows market participants to evaluate their position and assess investor sentiment.
#Bitcoin On the 4-hour chart, it appears that a bull-flag is breaking! If $BTC Holds over $70,000 could lead to an increase of almost 10%, resulting in a record-breaking $77,000 high! pic.twitter.com/MPVB70p9DU
— Ali (@ali_charts) March 28, 2024
Martinez said that the recent decline was not necessarily cause for concern. It could actually be seen as a consolidation of sorts that will strengthen the basis for future growth.
A shift in Bitcoin’s ownership structure that is more than just technical, fuels optimism. Institutional investors can now invest in spot Bitcoin Exchange Traded Funds, which were launched long ago. The professionally managed funds are backed up by major corporations. financial Institutions are believed to own a total of 5% in the Bitcoin supply.
Total cryptocurrency market cap currently stands at $2.45 trillion. Chart: TradingView
This institutional inflow is further corroborated by on-chain data. CryptoQuant reports that the current bull cycle is different from previous cycles. Traditionally, Bitcoin The ownership of existing large holders was transferred (“whales”Retail investors. However, the current market cycle appears to be witnessing a transfer from these whales to new whales – traditional financial institutions.
Bitcoin Price Forecasts: Bullish Predictions
Some analysts have become more confident in their price forecasts due to the influx of institutional money. Martinez refused to give an exact timeframe of when the price will break above $73,750. However, other analysts are being more specific. Bitcoin’s price is expected to rise from $100,000 up to $150,000 in the next few years.
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Experts caution, however, against blindly following these extreme predictions. Although the crypto market has always been volatile, technical analysis cannot guarantee that future prices will move in a certain direction. It is still not clear what the long-term effects of institutional participation on market dynamics will be.
Bitcoin has undoubtedly become more exciting since the combination of bullish technical patterns and institutional investments. All eyes are focused on the leading cryptocurrency as it continues to climb towards uncharted terrain.
Chart from TradingView, Featured Image from Pexels
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