Key Points
- Bitcoin’s price is aiming for $120K, driven by high demand from whale investors.
- The demand for Bitcoin continues to rise, notably from long-term investors.
After a significant market correction, the price of Bitcoin (BTC) recovered to trade above $102K again. The price had fallen below $98K on Monday but bounced back by over 5% to trade at about $102,826 on Tuesday.
Bitcoin’s price rebounded from the 50-day Moving Average (MA), reducing the likelihood of a short-term reversal. A potential double top coupled with a bearish divergence of the daily Relative Strength Index (RSI) was also noted.
Bitcoin’s Future Outlook
Bitcoin is already in price discovery in the daily time frame and is on the verge of entering the exciting phase of the 2024/2025 bull cycle. According to crypto analyst Captain Faibik, Bitcoin’s price has been forming a rising megaphone structure, aiming for a new all-time high of about $120K in the near future.
Increasing Demand from Whale Investors
The demand for Bitcoin from long-term investors has surged in the past year. This is evident from the decreasing supply of Bitcoin on centralized exchanges, which is currently around 2.17 million, up from 2.72 million in January 2024.
Despite the lackluster performance of most US spot BTC ETFs, BlackRock’s IBIT continued to accumulate more coins. On Monday, IBIT registered a net cash inflow of about $64 million, despite a daily net cash outflow of around $457 million.
Companies such as Metaplanet and MicroStrategy have intensified their efforts to boost their Bitcoin reserves in the coming quarters. On Monday, MicroStrategy announced the launch of STRK, a new convertible preferred stock offering, to sell 2.5 million shares and purchase more Bitcoins in the near term.
Metaplanet also announced plans to sell 21 million shares to raise ¥116 billion to accumulate 10K BTCs by the end of 2025 and 21K Bitcoins by 2026.
Anticipated Demand Increase
The demand for Bitcoin is expected to increase sharply due to the implementation of a strategic Bitcoin reserve in the United States, at both the state and federal government levels. According to Dennis Porter, the CEO and Co-founder of the Satoshi Action Fund (SAF), Arizona has become the first state in the United States to pass a bill out of committee to create a strategic Bitcoin reserve.
The Arizona bill on a strategic Bitcoin reserve will soon move to the Senate for a floor vote, backed by Senator Wendy Rogers.
Senator Cynthia Lummis has already formed a team of 8 members for the Senate Banking Subcommittee on Digital Assets to prepare for creating bipartisan crypto regulations.
