The recent retreat in Bitcoin price has taken the market by storm, while some experts remain optimistic about its future. Latest on-chain data and technical indicators suggest a significant bullish reversal may be on the horizon, potentially driving Bitcoin to $88,000.
Notably, this optimistic forecast is fueled by a combination of historical trends and a notable flag pattern, igniting investor confidence amid the broader market volatility.
On-Chain Data Indicates Bitcoin Price Rally To $88K Soon
Prominent crypto market analyst Crypto Faibik has predicted a bullish turn for Bitcoin, citing a “Bullish Flag Pattern” on the weekly chart. In a post on the X platform, Faibik asserted that Bitcoin could surge to $88,000 by July or August.
Source: Captain Faibik
Notably, the flag pattern, often seen as a continuation signal, suggests that Bitcoin might be preparing for another upward move after its recent consolidation. Supporting this outlook, another well-known analyst, Ali Martinez, emphasized the current “Fear” sentiment in the market, as reflected by the Bitcoin Fear and Greed Index, which has fallen to 30.
Source: Ali Martinez, X
Meanwhile, Martinez noted that this drop in sentiment typically presents buying opportunities. Besides, he pointed out that the Relative Strength Index (RSI) hitting oversold levels has historically preceded substantial price rebounds.
Martinez highlighted that in previous instances over the past two years, similar RSI conditions led to Bitcoin price increases of 60%, 63%, and 198%. In addition, Martinez also pointed to the Market Value to Realized Value (MVRV) Ratio, which is currently below -8.40%.
Source: Ali Martinez, X
Looking at the historical trends, such levels have led to notable price surges. He observed that the MVRV ratio dipping to these levels previously triggered price jumps ranging from 28% to 100%. With Bitcoin currently under $60,000 and the MVRV ratio at -8.96%, Martinez suggests this could be an ideal time for investors to buy the dip.
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Institutional Accumulation and Market Dynamics In-Play
Complementing these technical analyses, data from on-chain analytics firm IntoTheBlock indicates substantial accumulation by large Bitcoin holders. According to their report, wallets controlling at least 0.1% of the total Bitcoin supply added 7,130 BTC, valued at approximately $436 million, in a single day.
Source: IntoTheBlock
This significant net inflow marks the highest level since late May, suggesting that despite market fears, uncertainty, and doubts (FUD) institutional investors are capitalizing on the recent price dip to accumulate more Bitcoin.
The combined insights from Crypto Faibik, Ali Martinez, and IntoTheBlock highlight a growing sentiment among market participants that Bitcoin’s recent decline might be a precursor to a strong recovery. The flag pattern and on-chain accumulation align with the historical resilience of Bitcoin during periods of market fear, suggesting a possible rally toward $88,000.
On the other hand, recent reports indicate that Morgan Stanley is likely to approve Bitcoin ETFs on its platform for customers by August 2024 end. The report, citing a “very senior source”, has further fueled optimism over growing institutional interest in the flagship crypto.
As of writing, Bitcoin price exchanged hands at $61,254.19, noting a flat change from yesterday. Furthermore, the crypto has touched a low of $58,601.70 in the last 24 hours, with its trading volume soaring over 32% to $37.15 billion.
Also Read: Metaplanet Creates Offshore Arm for Enhanced Bitcoin Strategy
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Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
