- Numerous indicators of the price of Bitcoin indicate an extremely optimistic “post-halving growth trajectory.”
The price of Bitcoin BTC tickers down $65,777 rebounded to $65,000 on July 16 as traders’ concerns about the German government selling Bitcoin diminished. However, after Mt. Gox started transferring $6 billion worth of coins from its cold wallet to different addresses, there are worries that the price of Bitcoin could fall to $58,000.
Market observers think that Bitcoin’s “post-halving” growth trajectory is still valid in spite of this.
Let’s examine a few of the theories that analysts use to support their belief that the Bitcoin bull market is still active.
Coinbase Premium reverses to the positive
Given the recent increase in spot buying on Coinbase Pro, Bitcoin’s decisive breakout above $65,000 might occur sooner than anticipated.
The Coinbase Premium Index, which gauges the difference in price of Bitcoin between Coinbase Pro and Binance, has turned positive and increased to 0.1%, levels last saw in mid-May, according to FalconX Research.
This indicates that, in comparison to other exchanges like Binance, purchasing at Coinbase seems to be strengthening.
An indication of long-term support could be a positive reading on the Coinbase Premium Index. A negative premium, on the other hand, denotes robust spot selling at Coinbase.
David Lawant, head of research at FalconX Research, thinks that the price of bitcoin is about to go on a big rally akin to what happened in October 2023 and March of this year, when it increased by about 170% from $26,000 to reach a new all-time high of $73,835.
Growing amounts of money are going into Bitcoin investment goods
The fact that money is still flowing into Bitcoin investment products is another reason why traders think the cryptocurrency’s bull run is still going strong.
Author and independent analyst Timothy Peterson said last week that Cumulative Net ETF Flows hit a new all-time high on the social media platform X in a post dated July 15.
According to Peterson, he is valuing Bitcoin at $71,000 using this metric. This suggests that rising institutional investor demand will probably have a favorable effect on the price of bitcoin.
To put this in perspective, Bitwise Senior Investment Strategist Juan Leon stated that more sovereign cash has flowed into any country during H2 2023 than has been invested in spot Bitcoin exchange-traded funds (ETFs) in the six months since their introduction on January 11.
Leon clarified that the CME BTC futures, which reached record highs in Q2, as well as spot BTC ETFs (>$15B inflows) are the main drivers of the robust institutional demand for #BTC.
In a similar vein, according to CoinShares’ most recent Digital Asset Fund Flows Weekly Report, inflows into Bitcoin asset investment products recorded their fifth-largest weekly inflows ever during the week ending July 12. This brought inflows for the year to a record $17.221 billion.
James Butterfill, head of research at CoinShares, said that investors took advantage of the recent decline in the price of Bitcoin to buy more on the dips, which is why there were so large inflows.
Bitcoin returns to its range following the halving
Technically speaking, Rekt Capital, an unnamed Bitcoin expert, claimed that there had been a major shift in trend following Bitcoin’s most recent retest of $65,000.
The Post-Halving ReAccumulation Range has been effectively regained by Bitcoin, according to a July 16 post on X by Rekt Capital.
The expert was discussing the range of prices that BTC traded in the weeks after the April Bitcoin halving event.
Three months after the halving, according to analysts at cryptocurrency analytics service Ecoinometrics, Bitcoin was trading toward the lower end of its growth range.
They stated that it is time for something to happen, announcing audacious goals for the price of Bitcoin nearly three months after the fourth halving.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
