The Bitcoin (BTC) price has experienced multiple crashes in recent months, but the expectations for its value remain high due to a surge in exchange-traded fund (ETF) inflows. Analyst Micky Bull has made a bullish prediction, forecasting that the BTC price will surpass $100,000. This optimism is fueled by the positive inflows into U.S. spot Bitcoin ETFs, which saw a reversal in volumes on September 12, 2024, with $39.02 million coming in. In contrast, Ethereum ETFs experienced a net outflow of $20.14 million.
The cost basis for ETF investors, which is the original value of BTC for tax purposes, currently stands at $62,000, while Bitcoin is trading at around $57,000. This means that most ETF investors are currently at a loss. The combination of increased ETF inflows, institutional accumulation, and historical patterns has led analysts to believe that Bitcoin is on the cusp of a significant rally.
Micky Bull has revised his Bitcoin price target to $112,000, citing confidence in the cryptocurrency’s potential to surpass previous highs. He believes that Bitcoin could be gearing up for a parabolic rally, with a cycle top expected in the coming months. Based on historical trends following past Bitcoin halvings, Bull predicts that Bitcoin will reach $112,000 this year.
Bitcoin’s recent price action has formed an inverted head and shoulders (H&S) pattern, indicating a potential bullish reversal that could propel the price towards $65,000. To achieve this target, Bitcoin would need to break above the current consolidation zone at $62,000. A break above the H&S neckline at $59,500 could trigger a surge to $65,000, followed by a retracement. However, a break above $65,000 with confirmed volume could lead to a rally surpassing the previous all-time high and reaching $112,000.
In conclusion, the recent spike in ETF inflows, combined with historical patterns and technical analysis, suggests that Bitcoin is poised for a significant price surge. Analysts like Micky Bull are optimistic about Bitcoin’s future performance, with some predicting a price target of $112,000. As the market dynamics continue to evolve, investors are closely watching Bitcoin’s price movements for potential opportunities to capitalize on its growth.
