Bitcoin (BTC) has the potential to reach new heights as it recently displayed a fresh bull flag, attracting increased interest from institutional investors.
According to experienced market analyst Ali Martinez, Bitcoin is poised to surpass its current all-time high of $73,750 in the near future. This prediction is based on a technical analysis of Bitcoin’s 4-hour chart, which reveals the formation of a new bull flag.
A bull flag typically indicates the continuation of an upward trend. In the case of Bitcoin, the recent drop below $61,000 created the conditions for the formation of a bull flag. Following this downtrend, Bitcoin rebounded within the $67,000 to $70,000 range, entering a consolidation phase.
Bitcoin has now established a strong position above $70,000 and could potentially reach as high as $77,000 based on the current bull flag pattern. However, Martinez does not provide a specific timeline for this projected 10% increase.
In recent times, Bitcoin has transitioned from being predominantly owned by retail investors to being increasingly controlled by institutional players. This shift has become even more apparent with the introduction of spot Bitcoin ETFs in the United States.
These ETFs, which are primarily backed by institutional investors, currently hold around 4% of the total Bitcoin supply. On-chain data also supports this trend, with a noticeable deviation from BTC ownership distribution during previous bull cycles.
Data from CryptoQuant indicates that the current market cycle is witnessing a transfer of Bitcoin ownership, with old whales (existing large Bitcoin owners) selling their portfolios to new whales (traditional financial institutions). This differs from previous cycles, where Bitcoin flowed from existing whales to retail investors.
Optimistic Bitcoin investors believe that this change in supply dynamics could contribute to an increase in Bitcoin’s value. Numerous bullish predictions suggest that Bitcoin could trade anywhere between $100,000 to $150,000 this year, with some even speculating prices as high as $500,000 by 2025.
It is important to note that this article is for informational purposes only 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 strongly advised to conduct their own research before making any investment decisions, and The Crypto Basic assumes no responsibility for any financial losses incurred.