Bitcoin Price Prediction: Expected to Hit $112,000, What’s Driving It?

Despite recent fluctuations, Bitcoin’s price is anticipated to soar above $100,000, driven by a surge in exchange-traded fund (ETF) inflows, according to crypto analyst Micky Bull. The positive inflows observed in U.S. spot Bitcoin ETFs on September 12, 2024, amounting to $39.02 million, marked a notable shift from previous low volumes. In contrast, Ethereum ETFs experienced a net outflow of $20.14 million during the same period, with some ETFs showing no change in activity.

The influx of funds into ETFs typically occurs when the cost basis for ETF investors surpasses Bitcoin’s current market value. According to CryptoQuant CEO Ki Young Ju, the cost basis for “New Custodial Wallets/ETFs” stands at $62,000, while Bitcoin is trading around $57,000, indicating that most ETF investors are currently at a loss. This convergence of increased ETF inflows, institutional accumulation, and historical trends has led analysts to predict a significant rally for Bitcoin.

Micky Bull has revised his Bitcoin price target to $112,000, expressing optimism about the cryptocurrency’s potential to exceed previous highs. He foresees a parabolic rally in the near future, reaching a cycle peak in the upcoming months, drawing parallels to historical trends following past Bitcoin halving events.

Bitcoin’s recent price movements have formed a compelling chart pattern that could signal a bullish reversal, potentially propelling Bitcoin towards $65,000. An inverted head and shoulders (H&S) pattern is emerging, suggesting a price target of approximately $65,000. However, this scenario hinges on breaking above the current consolidation zone around $62,000, which might trigger a further hunt for sell-side liquidity.

A breach above the H&S neckline at $59,500 could initiate a surge to the range’s top, aiming for $65,000 in a subsequent buy-side liquidity run before a likely retracement. Should Bitcoin surpass $65,000 with substantial volume confirmation, it could pave the way for a more substantial rally, potentially surpassing previous all-time highs and reaching the $112,000 mark projected by analyst Micky Bull.

In conclusion, the recent surge in ETF inflows is poised to catalyze investment and adoption, setting the stage for Bitcoin’s price to potentially reach new heights in the near future.