Is Bitcoin Repeating Its 2020 Sign? Here’s why $92.5K could be the next target
Bitcoin (BTC) price looks poised to rally towards $90,000 or higher in the coming weeks due to supportive technical, chain and fundamental indicators.
BTC price is taking the shape of a bull pennant.
BTC price has entered a consolidation phase, moving sideways in a bullpen-like triangle after making a new all-time high of $69,210.
In particular, traditional analysts view bull pennants as bullish continuations that may increase in value as much as previous highs. This crash is typically accompanied by an increase in transaction volume.
As the price continues to strengthen, especially after new all-time highs and other factors discussed below, there is a high chance of Bitcoin breakout. Therefore, the next target in the coming weeks could be $92,500, a 35% increase from current levels.
Rising Bitcoin ETF earnings
Bitcoin's rise in recent weeks has been linked to increased capital inflows into US-based exchange-traded funds (ETFs). In particular, these ETFs They held more than $53 billion in reserves as of March 7, compared with $27.95 billion when they started in January.
Higher returns to ETFs indicate that more investors are buying ETF shares, which, in turn, increases demand for the asset. This is because the fund manager may need to purchase additional assets to ensure that the ETF index accurately reflects the composition or sector it tracks.
Market analyst Timothy Peterson commented on X that “if the approval of the Bitcoin Spot ETF goes ahead, it looks like a rally has begun that will put BTC at $100K by October 2024.”
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What's more, the rising ETF revenue comes weeks before bitcoin's halving. Historically, mining has been associated with price increases before (and after) the reward halving.
2020 Bitcoin fractal hints at further gains in the future
Bitcoin's current price action looks like a historical fractal ahead of a November 2021 rally to $69,000, according to market analyst Jelle.
These similar weaknesses at all-time highs suggest that the next leg up may be just around the corner, albeit with some differences.
“Bitcoin is synonymous with the 2020s all-time high crash,” argued Jelle on X, adding:
“A failed flash with a sharp correction, followed by some consolidation and a successful breakout higher.”
Even if history repeats itself with a successful upswing, the price of BTC will target prices north of $75,000.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
