Bitcoin ETF

Bitcoin

when

Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) price looks ready to rally toward or above $90,000 in the coming weeks due to a mix of supportive technical, on-chain and fundamental indicators.
<h2 data-ct-non-breakable="true" id="btc-price-bull-pennant-taking-shape">BTC price bull pennant taking shape</h2>
BTC’s price has entered a consolidation phase, moving sideways within a triangular formation resembling a bull pennant after achieving a <a href="https://cointelegraph.com/news/why-is-bitcoin-price-up-today">new all-time high</a> of $69,210.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-03/dc3db6d6-7a49-4a5f-8d1e-cdf4de2e7e3c.png" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USD daily price chart. Source: TradingView
 </figcaption>
</figure>
Notably, traditional analysts see bull pennants as bullish continuation patterns that could increase prices as much as the previous uptrend’s height. This breakout typically accompanies an <a href="https://cointelegraph.com/news/bitcoin-retail-interest-spot-trading-volume-yearly-high">increase in trading volume</a>.
Bitcoin’s chances of a breakout are currently considerable as the price consolidates, particularly after <a href="https://cointelegraph.com/news/bitcoin-price-sets-new-record-high-69k">new all-time highs</a>&nbsp;and other reasons discussed below. Thus, the next target could be around $92,500 in the coming weeks, up 35% from the current levels.
<h2 data-ct-non-breakable="true" id="increasing-bitcoin-etf-inflows">Increasing Bitcoin ETF inflows</h2>
Bitcoin’s price uptrend in recent weeks has coincided with the <a href="https://cointelegraph.com/news/blackrock-etfs-record-inflow-bitcoin-bullrun">increasing capital inflows</a> into the United States-based exchange-traded funds (ETF).&nbsp;Notably, these ETFs hold over $53 billion in reserves as of March 7, compared to $27.95 billion at their launch in January.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-03/256ce96d-2340-471c-9892-5855d289027f.png" alt="" title="">
 <figcaption style="text-align: center;">
 U.S. Bitcoin ETF balance. Source: Glassnode
 </figcaption>
</figure>
Higher inflows into an ETF suggest that more investors are buying shares of the ETF, which, in turn, increases demand for the underlying assets. This is because the fund manager may need to purchase additional assets to ensure the ETF accurately reflects the index composition or sector it tracks.
“It appears that the Bitcoin&nbsp;Spot ETF approval launched an accumulation that, if sustained, puts BTC&nbsp;at $100K by October 2024,” market analyst Timothy Peterson <a href="https://twitter.com/nsquaredcrypto/status/1765517977229599103" target="_blank" rel="noopener nofollow">commented</a> on X.
Related:&nbsp;<a href="https://cointelegraph.com/news/tesla-buying-bitcoin-btc-wallet-curiosity">Is Tesla buying Bitcoin again? BTC wallet data sparks curiosity</a>
Moreover, the increasing ETF inflows come weeks ahead of <a href="https://cointelegraph.com/learn/bitcoin-halving-how-does-the-halving-cycle-work-and-why-does-it-matter">the Bitcoin halving</a><a href="https://cointelegraph.com/learn/bitcoin-halving-how-does-the-halving-cycle-work-and-why-does-it-matter"></a>.&nbsp;Historically, halving events have been associated with increases in the price before (and after) the mining reward is cut in half. &nbsp;
<h2 data-ct-non-breakable="true" id="2020-bitcoin-fractal-hints-at-more-gains-ahead">2020 Bitcoin fractal hints at more gains ahead</h2>
Bitcoin’s current price action also closely resembles a historical fractal before its price rally toward $69,000 in November 2021, according to market analyst Jelle.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-03/00c4bf4b-64d9-4323-a749-054bcc560a80.jpeg" alt="" title="">
 <figcaption style="text-align: center;">
 Bitcoin price consolidation comparison between 2024 and 2020. Source: TradingView/Jelle&nbsp;
 </figcaption>
</figure>
These similar drawdowns around all-time high prices suggest that the next leg up might be just around the corner, like during the last bull cycle, albeit with some differences.&nbsp;
“Bitcoin is acting similar to 2020’s all-time high breakout,” Jelle&nbsp;<a href="https://twitter.com/CryptoJelleNL/status/1765647182261092471" target="_blank" rel="noopener nofollow">argues</a>&nbsp;on X, adding: 
<blockquote data-ct-non-breakable="true">
 “A failed breakout with sharp correction, then some consolidation, and a successful breakout higher.”
</blockquote>
Should history repeat with a successful breakout higher, BTC price will be targeting prices north of $75,000.&nbsp;
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Is Bitcoin repeating its 2020 breakout? Here’s why $92.5K might be the next target

Table of Contents

Cointelegraph

Other articles published on Mar 8, 2024

LayerK: Laying the Foundation of Web3’s Future

Advanced Healthcare Technologies Revolutionize Patient Care in Australia

Glambase AI: Transforming Passive Income Strategies - Earn $10k Monthly with Ease

So what chances are there left for Nigeria to get into BRICS?

Bitcoin Holds Strong as US Economic Indicators Impact Crypto Markets

Blockchain Life Forum 2024 in Dubai: find out how to make the most of the current Bull Run

Join our free newsletter for daily crypto updates!