Bitcoin Price Analysis: Smart Money’s Buying Spree Continues – Will $75k Be the Next Milestone?
The cryptocurrency market experiences relative calm over the weekend as Bitcoin’s price endeavors to find stability following a surge during the weekdays. The recent uptick can be attributed to substantial investments in Spot Bitcoin ETFs and the accumulation of assets by large investors. With the current positive momentum, analysis of Bitcoin’s price indicates that buyers may soon close the 9.26% gap to reach an all-time high of $73,750. This begs the question: is now a favorable time to consider investing in Bitcoin?
Examining the Bitcoin price movement over the past three weeks reveals a notable V-shaped recovery in the daily timeframe. This bullish shift has propelled the asset from a support level of $53,500 to a peak of $67,617 within a week, marking a robust 26.2% increase.
During the weekend consolidation, Bitcoin encountered resistance at $67,277, leading to a slight 0.45% dip, settling at $66,868. Concurrently, the market cap hovers around $1.319 trillion. Should the current bullish trend persist, Bitcoin’s price could potentially surge by another 5.6%, setting the stage for a challenge against a significant resistance level within a broadening wedge pattern. This pattern, characterized by diverging trendlines serving as dynamic support and resistance, has steered Bitcoin through a consolidation phase over the past four months.
A potential breakthrough above the upper trendline would signify a continuation of the existing uptrend. Notably, data from Lookonchain, a reputable on-chain data tracker, indicates a surge in buying activity by a significant investor, who has acquired a substantial amount of Bitcoin within a short span of time.
In the last four days alone, this investor has purchased a total of 677 BTC, valued at approximately $45.6 million, with the most recent transaction involving 213.78 BTC worth $14.48 million occurring just nine hours ago. These sizable acquisitions underscore the confidence major investors have in Bitcoin’s potential for a substantial price increase.
Further contributing to the optimistic outlook, Nate Geraci, president of The ETF Store, emphasized the pivotal role played by the spot Bitcoin ETF in the United States. Currently holding 900,000 Bitcoins, equivalent to 4.3% of the total Bitcoin supply, these assets are valued at around $60 billion. Since its launch in January, the ETF has witnessed a net inflow of $17 billion, reflecting robust institutional interest and trust in Bitcoin.
In conclusion, a breakout from the wedge pattern could fuel buying momentum, potentially propelling Bitcoin’s price forecast target to $80,000, with further gains possibly extending to $90,000. Technical indicators, such as pivot levels and the ADX slope, suggest potential resistance levels and the evolving market trend, respectively.