Despite multiple crashes over the past few months, Bitcoin (BTC) price expectations remain extremely high after raise in the inflow of funds into ETF funds. The leader of this forecast is cryptocurrency analyst Micky Bull, who revealed another bullish forecast, betting BTC price above the desired amount of $100,000.
Bitcoin ETFs Positive Inflow to Cause Bitcoin Price Rally
US spot Bitcoin ETFs recorded positive inflows of $39.02 million on September 12, 2024, marking a reversal from previous low volumes. In contrast, Ethereum ETFs recorded net outflows of $20.14 million, with some ETFs seeing no change.
Typically, positive inflows occur when the cost basis for ETF investors (the original value of BTC for tax purposes) exceeds the current price of Bitcoin. According to CryptoQuant CEO Ki Newborn Ju, cost basis for “new custodial/ETF portfolios” it is $62,000 while the price of Bitcoin is around $57,000, meaning that most ETF investors are currently at a loss.
The combination of increased ETF inflows, institutional accumulation, and historical patterns have led analysts to conclude that Bitcoin (BTC) is on the verge of a significant uptrend.
For example, Miky Bull raised his Bitcoin Price Target to $112,000, expressing confidence that the cryptocurrency has the potential to surpass previous highs. According to his X post, BTC could be set for a parabolic rally, reaching a cycle peak in the coming months. His analysis is based solely on historical trends following previous Bitcoin halvings.
He said, “History has indeed prevailed. In Q4 2016 and 2020, after the halving, we saw the beginning of a parabolic rally to the top of the cycle. Bitcoin is heading for its first target of $112,000 this year.” So speculatively, the recent surge in ETF inflows could serve as a catalyst, influencing investment and adoption.
BTC will reach $65,000 first
Bitcoin’s recent price action has shaped an intriguing chart pattern which, if completed, could signal a bullish turn and push Bitcoin towards $65,000. An inverted head and shoulders (H&S) pattern is emerging, suggesting a potential price target around $65,000. However, this requires breaking through the current consolidation zone (USD 62,000), which may trigger another wave of searching for liquidity on the sellers’ side.
A break of the H&S neckline of $59,500 could initiate a rally to the top of the range, potentially reaching $65,000 in a second run of buy-side liquidity before a pullback. However, a break above $65,000 on confirmed volume could lead to a more significant rally, potentially exceeding the previous all-time high and reaching the $112,000 level predicted by analyst Mikky Bull.
Featured image created with Dall.E, chart from Tradingview.com
