Bitcoin $63,547is back on the agenda with the spot ETF application of the world’s largest asset manager BlackRock and increasing institutional interest. It is interpreted that the US debt approaching $35 trillion may make Bitcoin more attractive to institutional investors. Famous crypto analyst Mihir predicts that the Bitcoin price could reach $120,000 if it breaks out of its multi-year consolidation model.
$120K Bitcoin Prediction
Popular crypto analyst Mihir shared his thoughts on Bitcoin’s current price movements via social media platform X. The analyst states that Bitcoin has formed a “cup-handle” formation on its annual chart and could experience a significant rise if it completes this formation.
The “cup-handle” pattern is a bullish chart pattern consisting of a round bottom followed by a downward consolidation below a horizontal resistance level. Confirmation of this resistance level as support indicates that the pattern is complete. In this case, the depth of the cup is measured and added to the exit point and the target price is determined. Mihir’s prediction is that this pattern could take the Bitcoin price to $120,000.
BlackRock: Institutions May Turn to Bitcoin
Bitcoin has become more popular in traditional financial circles after BlackRock’s spot ETF application in June 2023. Amid recession concerns and fears of a depreciation of the US dollar, BlackRock has drawn attention to possible “concerns” over the US debt approaching $35 trillion. The company says this debt burden could drive institutional investors to Bitcoin.
Spot ETF inflows have decreased due to Bitcoin’s consolidation over the past six months. July saw an inflow of $886 million, the highest in two months. According to SoSo Value data, total net inflows into spot Bitcoin ETFs since their launch on January 10 have reached $17.69 billion.
Institutional Investors Are Accumulating Bitcoin
According to on-chain data provider Santiment, wallets holding 100 to 1,000 and 10,000 to 100,000 BTC are accumulating Bitcoin. These ranges are generally beyond the portfolio size of average investors, meaning that the aforementioned groups can be included in the professional investor class. Individual cryptocurrency investors are closely following these names, also called “smart money.” This group also plays an active role in determining market trends.
Investors holding 100 to 1,000 and 10,000 to 100,000 BTC had accumulated before previous bull markets and profit-taking near the peak. The fact that these investors are accumulating Bitcoin again indicates a major bullish expectation. According to historical data, the fourth quarter has been a bullish period for Bitcoin, with an average return of 98%. This situation seems to be in line with analysts’ predictions that the Bitcoin price could reach $120,000.
Bitcoin’s outlook is generally positive as the fourth quarter approaches. The upcoming presidential election and increasing institutional demand are seen as factors that could push Bitcoin’s value above $100,000. Analysts and on-chain data are showing signs that large investors are accumulating and a significant price increase is possible.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
