Bitcoin (BTC) appears poised to surge towards or exceed $90,000 in the coming weeks, thanks to a combination of positive technical, on-chain, and fundamental indicators.
After reaching a new all-time high of $69,210, BTC’s price has entered a consolidation phase, forming a triangular pattern resembling a bull pennant. Traditional analysts view bull pennants as bullish continuation patterns that can lead to price increases equal to the previous uptrend’s height. Typically, a breakout from this pattern is accompanied by increased trading volume.
Given BTC’s consolidation phase following new all-time highs and other factors discussed below, the next target for its price could be around $92,500, representing a 35% increase from current levels.
One contributing factor to Bitcoin’s upward trend is the increasing capital inflows into US-based exchange-traded funds (ETFs). These ETFs currently hold over $53 billion in reserves, compared to $27.95 billion at their launch in January. Higher inflows into an ETF indicate that more investors are buying shares, which, in turn, increases demand for the underlying assets.
The growing ETF inflows also come ahead of the Bitcoin halving, an event historically associated with price increases before and after the mining reward is halved.
Bitcoin’s current price action also resembles a historical fractal that preceded its rally to $69,000 in November 2021. This similarity suggests that another significant price increase may be imminent, similar to the last bull cycle, albeit with some differences. If history repeats itself with a successful breakout, BTC’s price could surpass $75,000.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment decisions.