Quick overview
- Bitcoin is currently consolidating above the $120,000 mark, gaining 1.3% in the last 24 hours.
- Technical analysis suggests a range-bound trading phase, with key support at $110,530 and resistance between $120,000 and $123,218.
- Institutional interest remains strong, with significant inflows into Bitcoin ETFs and a notable increase in first-time buyers.
- Experts believe this consolidation could set the stage for a future price surge, potentially reaching targets of $135,000 to $150,000.
Bitcoin BTC/USD is still holding strong above the important $120,000 milestone, and in the last 24 hours it has gained 1.3%. As bears maintain the $120,000 barrier zone, the world’s largest cryptocurrency by market cap seems to be entering a consolidation phase. Analysts think this might be a strategic accumulation time before the next big rise.
BTC/USD Technical Analysis Points to Range-Bound Trading
The daily chart tells us a lot about how the Bitcoin market is doing right now. There has been selling pressure every time the price tries to break above $120,000, as shown by the lengthy wicks on recent candlesticks. The fact that this level keeps getting rejected shows that bears are actively protecting it.
Technical indications are showing that there may be some sideways movement in the near future. The 20-day exponential moving average (EMA) is at $113,528, which is a strong level of support for any retreat that might happen. The 20-EMA has flattened out on the four-hour period, and the Relative Strength Index (RSI) is slightly above the midpoint, both of which suggest that a range may be forming.
For a long time, analysts think Bitcoin will trade in a range between $115,000 and $123,218. This consolidation phase could be good for the long-term direction of the market because it gives it time to absorb recent gains and set the stage for the next leg up.
Price Targets and Critical Support Levels
If bulls can break through the $120,000 to $123,218 resistance zone, Bitcoin might start its next big surge toward $135,729, with a final pattern objective of $150,000. To reach these high goals, there needs to be steady buying pressure and successful defense of important support levels.
At $110,530, the most important support level is the current bull run’s make-or-break point. If the price drops below this level, it might lead to a bigger pullback toward $105,000, which could change the short-term optimistic picture.
Traders are looking for a break above $120,064 to confirm that the market is going up right away. This would likely lead to a retest of the all-time high of $123,218.
BTC/USD
Institutional Momentum Drives Market Confidence
The basic factors that sustain Bitcoin’s price movement are still strong. On Wednesday alone, US-based Bitcoin exchange-traded funds saw an amazing $799.4 million in inflows, making it the 10th day in a row that institutions have bought them. Investors have put more than $5.2 billion into BTC ETFs since July 2, showing that institutions are still interested.
Digital asset investment products recently saw their second-largest weekly inflow of $3.7 billion. This brought the total amount of assets under managed to an all-time high of $211 billion. Bitcoin-backed products make up 85% of the global crypto investment product industry, or $179.5 billion.
Fresh Capital Indicates Renewed FOMO
On-chain data shows that a lot of new money is coming in, with first-time Bitcoin buyers getting over 140,000 BTC in just two weeks. This means that their holdings went up by 2.86%, from 4.77 million to 4.91 million BTC. This new demand looks like “FOMO” (fear of missing out) behavior is back, which is good for Bitcoin’s latest breakout.
Mid-Cycle Adoption Signals Long-Term Potential
Jurrien Timmer, Fidelity’s Director of Global Macro, said that Bitcoin is still in the middle of its acceptance curve, which is similar to how the internet grew in the past. Timmer’s analysis shows that the current price action is not for an asset class that is already full, but for one that is growing. The far high end of the Bitcoin model implies that prices might reach $200,000 to $300,000.
The number of firms that use BTC is still growing quickly. In the second quarter, 46 public companies added BTC to their balance sheets, bringing the total to 125 companies that hold 847,000 BTC valued almost $91 billion.
Bitcoin Price Prediction: Patience Before the Next Rally
Bitcoin’s short-term future may include trading in a range, but the underlying fundamentals show that this consolidation phase is good for long-term growth. The next big price movement is likely to happen because of a steady influx of money from institutions, new interest from retail investors, and more companies using the currency.
Traders need to keep a careful eye on the $110,530 support level because protecting it will be important for keeping the bullish structure in place. If the price breaks over $120,000, it might swiftly go toward the $135,000 target. However, if it can’t hold critical support levels, it may need to make a bigger drop before trying to reach new highs again.
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.
His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.
His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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