Bitcoin is consolidating between $69,000 and $70,000 after a strong rebound from a low of $61k. As of 08:08 UTC, Bitcoin was trading at $69,880.48, down by 1.12%. However, the overall outlook for Bitcoin points to a breakout through $73k and on to making new highs.
ETF Inflows On The Rise
One of the critical factors pointing to a potential Bitcoin breakout is the significant increase in Bitcoin this week. Last week, there was a drop in Bitcoin ETF inflows as the price went down, but now there is a sharp reversal.
Bitcoin ETF net inflows are back!
$418mil yesterday pic.twitter.com/fgQ2GZfe43— Alistair Milne (@alistairmilne) March 27, 2024
Yesterday, net inflows into Bitcoin ETFs stood at $418 million, an indicator that institutional investors are increasingly bullish even as it trades at highs of $70k. As this demand through ETFs continues to rise, Bitcoin could see a breakout soon that could see it highs above $80k in the short term.
Sell-Side Liquidity Is Dropping
Such a spike could also be driven by the fact that the number of people willing to sell Bitcoin is increasingly getting smaller. Data shows that Bitcoin’s sell-side liquidity is shrinking. It is currently at some of its lowest levels since 2018. This means the demand for Bitcoin is now sharply outstripping supply.
With so much institutional interest in Bitcoin, with Goldman Sachs pointing to possible institutional FOMO, the odds are that Bitcoin could be headed for a significant price spike, one that could see it push through its recent high of $73k and make new above $100k.
Halving Is Just 24 Days Away
The odds of this happening are enhanced because the Bitcoin halving is just 24 days away. This means investors are buying more Bitcoin now in anticipation of a significant price rally post-halving. This anticipatory buying will start reflecting in the price as the halving approaches. It has already started showing, with Bitcoin increasingly showing a buildup in upside momentum after its recent correction to $61k.
$1 Million+ Per BTC Projections Are On The Rise
The rising level of investor interest in Bitcoin is also driven by the increased number of voices that see Bitcoin breaking the $1 million mark this year. One such voice is Cathy Wood, who predicts that Bitcoin could hit a high of $3.8 million. While such predictions may seem wild, investors are increasingly taking a major leg up for Bitcoin quite seriously.
That’s because, unlike in the past when retail money was the primary driver of Bitcoin’s price, today, institutional money is part of the play and in a big way. This, along with an increasing sharp drop in supply, could see Bitcoin hit such prices after halving. It explains the low sell-side liquidity and surging demand from institutional and retail investors.
Overall, Bitcoin is showing signs of a breakout through $73k, driven by increased demand for institutions and declining sell-side liquidity as more investors choose to HODL their Bitcoin in anticipation of a major price breakout within this pre-halving period and a parabolic price rally after the halving.
Bitcoin Selling Volumes Dry Up As It Approaches $73k, Strong Bullish Signal
Bitcoin continues its steady climb from the correction to $61k that ended nine days ago. While bears tried to retake control at $70k, selling volumes have dried up, and this indicates that bullish sentiment is on the rise and that a price spike through $73k is imminent.
If bulls can push Bitcoin through the $73,500 resistance today, then prices above $80k could come into focus today or later in the week.
However, if volumes remain at their current levels today, Bitcoin could see continued trading between $73,500 and $61,000 until there is an increase in trading volumes.
On the other hand, if bears take control in the day and push prices lower, then the weekly support level of $61,000 would come into focus.
Bitcoin Price Prediction – Why Bitcoin Is Headed For A Breakout To $80k
While Bitcoin can break out in any direction, the odds are higher that a bullish breakout is imminent. This is purely based on demand and supply factors. Currently, the demand for Bitcoin from institutional and retail money is rising. Inflows into ETFs, for instance, are on a sharp increase. This, coupled with the decline in sell-side liquidity for BTC, means a breakout is imminent.