Key Points
- Bitcoin’s price could see a 30% spike, potentially influenced by Microsoft’s possible entry into the market.
- Factors such as high demand from whale investors and a decrease in Bitcoin supply on centralized exchanges may lead to a bullish breakout.
After a significant rally, Bitcoin’s price has encountered resistance around $69K, potentially leading to a short-term correction.
Despite this, since the crypto market crash on August 5, Bitcoin’s price has shown a rising trend, marked by higher highs and lower lows.
Technical Analysis and Predictions
From a technical perspective, for Bitcoin to maintain its bullish momentum, the price must consistently close above the support/resistance level of approximately $68K in the upcoming days.
If Bitcoin manages to close above $68K, the next significant target would be $72K, the all-time high reached earlier this year.
Crypto analyst ZAYK Charts suggests that Bitcoin is on the brink of a 31 percent surge to $85K, following a successful retest of a breakout from a bullish flag.
Factors Influencing a Bullish Breakout
Bitcoin’s bullish sentiment is boosted by high demand from large investors.
According to an on-chain study by market intelligence platform Santiment, Bitcoin whale addresses with more than 100 BTC coins have risen by almost 300 in the past fortnight.
Over the same period, retail traders have increased the rate of Bitcoin dump, resulting in a decrease of 20,629 wallets with under 100 BTC.
As a result, based on the on-chain analysis, Santiment concludes that a bullish outcome is inevitable.
In the past week, the supply of Bitcoin on centralized exchanges has dropped by over 40K units to about 2.39 million.
This significant decrease in Bitcoin’s supply on centralized exchanges is largely due to the recent rise in demand from spot BTC ETFs.
Latest market data shows that BlackRock’s IBIT continued with its cash inflows, registering a net cash inflow of $165 million on Thursday.
As a result, US spot BTC ETFs have registered a net cash inflow of nearly $3 billion over the past three weeks.
Additionally, an SEC filing on Thursday revealed that Microsoft Corporation is considering entering the Bitcoin market through a shareholders meeting in December, although the board members have recommended voting against the proposal.
Japan’s Metaplanet Inc is slowly adopting Bitcoin as a hedge against fiat inflation, following the example of MicroStrategy Inc.
Bitcoin’s price is also expected to follow Gold in a bullish breakout in the near term due to the upcoming US 2024 presidential and congressional elections.
Moreover, the Federal Reserve is expected to initiate another rate cut on November 7 to stimulate economic growth in the country.
Significantly, the US dollar has faced intense competition from the BRICS movement, which has been consolidating its efforts to escalate the de-dollarization process.
