The movement of Bitcoin‘s price over the week has intrigued analysts, with patterns reminiscent of those seen in previous bull cycles. While the flagship cryptocurrency is consolidating after posting a new all-time high, historical data indicates that another breakout could be headed, which would target $150,000.
Bitcoin Consolidates After Reaching New All-Time High
The cryptocurrency reached an all-time high of $93,477 last week, inspiring a wave of optimism across the market. Since then, it has rebounded to $91,731 after briefly experiencing a dip, signaling the possibility of a breakout into the bulls.
Entering the current day, a symmetrical ascending triangle is in place on today’s chart, commonly known as a continuation trend. Analysts expect further upward movement, but with such success from major support areas holding. Once it establishes a consistent close below $89,000, the retracement to the $80,000 to $85,000 regions may be considered.
Historical Trends Suggest a Rally to $150,000
Crypto analyst Ali Martinez has positioned Bitcoin’s recent performance against the 2016/2017 and 2020/2021 bull cycles. Bitcoin surged more than 120% in both periods, past its previous all-time highs, before experiencing significant corrections.
During the 2016/2017 cycle, Bitcoin rallied 156% above its former top before correcting 39%. In the 2020/2021 cycle, Bitcoin rallied 121% and corrected 32%. Martinez believes Bitcoin can do it again, reaching as high as $138,000 to $150,000 before pulling back about 30%.
Institutional Investment Fuels Market Optimism
Institutional investors have pushed this development. Significant inflows have been noted in the spot Bitcoin ETFs and direct purchases. The U.S. spot Bitcoin ETFs reported $254 million in net cash inflows on Monday, exceeding the daily production rate of new coins.
This was directly represented by BlackRock’s iShares Bitcoin Trust, IBIT, which has surged with inflows amounting to more than $9 billion in seven weeks. MicroStrategy Inc., however, declared acquiring 51,780 BTCs for $4.6 billion, while the latest purchase brings its custody amount to 331,220 Bitcoins.
Metaplanet Inc. joined the trail of increased stakes, buying an additional 124 Bitcoins, underlining the growing institutional interest in the cryptocurrency.
Market Awaits Breakout or Correction
The price action in Bitcoin during the past week has oscillated between $89,000 and $91,000, building anticipation in the market. According to them, this consolidation mirrors previous bull markets; it is only a matter of time before a breakout could occur.
If Bitcoin extends beyond $150,000, historical data suggests a correction that could push the price back toward $105,000 or even $96,000. On the other hand, a dominated bearish sentiment might drive support levels to kick in between $83,000 and $85,000.
Institutional adoption and heavy inflows into investment products continue to show bullish momentum. Participants, however, remain sidelined as the broad market waits for the next decisive move over the coming days.
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