Key Points
- Despite the ongoing downward trend, Bitcoin (BTC) price may soon reach a new all-time high, according to the stock-to-flow (S2F) model.
- Increased global adoption and institutional investment in Bitcoin are contributing to the bullish outlook.
Despite the recent downward trend in the price of Bitcoin (BTC), several technical and fundamental models suggest that it could soon reach a new all-time high.
Crypto analyst PlanB, known for his accurate predictions using the stock-to-flow (S2F) model, believes that Bitcoin is still in a macro bull market.
Surge in Bitcoin Adoption
The global adoption of Bitcoin has seen a significant increase, particularly after the approval of spot BTC ETFs in several jurisdictions, including the United States.
Institutional investors such as MicroStrategy Inc and Metaplanet Inc have started incorporating Bitcoin into their investment portfolios and balance sheets.
On-chain data reveals that institutions holding more than 1k Bitcoins have been aggressively accumulating in recent months.
Long-term Bitcoin investors have added over 184,500 BTC coins in the past few weeks, despite market volatility.
US spot Bitcoin ETFs, led by BlackRock’s IBIT, currently hold approximately $50 billion in BTC coins.
On a single day, these ETFs accumulated coins worth around $45 million, while BTC miners received half of this amount.
Bitcoin’s hash rate has also reached an all-time high, making the network more secure with an increased number of participants in the mining industry.
Midterm Price Predictions for Bitcoin
Technically, Bitcoin’s price has been consolidating in a bullish flag for the past five months, indicating a potential major breakout.
The current price correction of Bitcoin is reminiscent of the 2015-2017 post-halving bull cycle.
Some experts have compared the recent price drop to $49K to the 2020 Black Thursday caused by the Covid-19 outbreak.
Despite predictions of a bearish trend for Bitcoin and the entire crypto industry in August and September, a potential bullish breakout in October and November could push the price towards $100k.
However, it is expected that the Bitcoin market may start shifting to the altcoin industry, triggering the much-anticipated altseason.
Bitcoin’s dominance has risen to a significant resistance level above 57 percent, with the weekly Relative Strength Index (RSI) suggesting a potential reversal.
