Bitcoin Breaks $71,000 Barrier, Analyst Predicts Rally to $100K
In an exciting turn of events, Bitcoin has surpassed the crucial $71,000 mark, prompting analyst Egrag Crypto to anticipate a bullish rally that could see the cryptocurrency soar past $100,000. This significant surge comes after Bitcoin’s price had not reached this level since June, making it a remarkable recovery. The momentum behind this upward movement has sparked speculation about even greater gains, fueled by technical patterns and a growing demand from institutional investors.
Egrag Crypto, an analyst on X, has drawn attention to Bitcoin’s breakout from a descending broadening wedge pattern. This bullish setup has been confirmed by Bitcoin’s successful retest and rebound off the upper boundary of the wedge.
According to Egrag, it is crucial for Bitcoin to maintain a price above $67,100 in order to sustain this bullish trend. His analysis projects a target range for Bitcoin between $102,000 and $110,000, based on the height of the wedge and the overall dynamics of the market.
Meanwhile, veteran analyst Peter Brandt shares a similar perspective on Bitcoin’s upward trend. He has focused on a triangle breakout to support the possibility of Bitcoin surpassing $94,000, $160,000, and even $230,000. Brandt’s analysis identifies an inverted expanding triangle on a semi-logarithmic scale, which has recently transitioned from a bearish to a bullish outlook.
With Bitcoin now trading above the key resistance level of $69,985, this breakout suggests that there is further bullish momentum on the horizon. If Bitcoin manages to maintain support above the $70,000 level, it could lay the foundation for additional gains, with $94,000 being the next potential target.
As these speculations unfold, institutional interest in Bitcoin continues to grow, evidenced by significant inflows into custodial wallets. Ki Young Ju, the CEO of CryptoQuant, recently highlighted that over the past year, 278,000 BTC have flowed into U.S. spot ETFs, primarily driven by retail demand.
In comparison, 670,000 BTC have flowed into whale wallets, which are characterized by holdings of over 1,000 BTC. Ju pointed out that institutional demand for custodial wallets is twice as high as retail demand, with whale wallets encompassing the larger set of custodial wallets. His analysis further suggests that most ETF custodial wallets hold less than 1,000 BTC, while non-ETF custodial wallets maintain larger balances.
This indicates that larger entities may be positioning themselves for a potentially bullish long-term outlook, as demand often precedes price surges.
Disclaimer: This article provides informative content and should not be considered financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.