Coinbase predicts strong support for Bitcoin
Investor sentiment in the cryptocurrency market has improved, with Bitcoin (BTC) surpassing the $52,800 mark. Analysts from Coinbase released a report indicating that Bitcoin should continue to see strong support over the next few months. According to Coinbase:
“We believe Bitcoin will remain well-supported for the next three to six months as more institutional players adjust to the new ETF reality. We’ve seen tremendous net inflows, totaling more than $4.2 billion year-to-date.”
The Block’s Data Dashboard also showed consistent positive fund flows for over two weeks. BlackRock’s iShares Bitcoin Trust (IBIT) saw its highest daily inflow yet, totaling $493.12 million. Additionally, Bitcoin’s open interest has reached its highest level since the FTX collapse, signaling aggressive accumulation by Bitcoin whales.
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According to Santiment, Bitcoin addresses holding between 1,000 to 10,000 BTC have played a significant role in driving the price higher. Since the start of 2024, Bitcoin whales have bought nearly $13 billion worth of BTC. If they continue to accumulate at this pace, Bitcoin’s price could climb well above $52,800.
Bitcoin’s growing acceptance as a mainstream asset is also reinforced by increasing institutional involvement. Despite the U.S. dollar index (DXY) strengthening, Bitcoin’s price has continued to rise, which is notable given that a stronger dollar typically discourages investment in riskier assets like Bitcoin.
Technical analysis for Bitcoin (BTC)
Bitcoin (BTC) has risen over 20% since the beginning of February 2024, from $42,545 to a high of $52,890. The current price of Bitcoin is $51,443. Although there has been a slight correction, bulls continue to control the price movement. Analysts suggest that more investors could purchase Bitcoin in the coming weeks. As long as Bitcoin remains above $50,000, it remains in the BUY zone.
Key support & resistance levels for Bitcoin (BTC)
Bitcoin’s current support level is $50,000. If the price drops below this level, it may signal a potential decline to $48,000. If Bitcoin breaks through the $55,000 level, the next resistance could be at $60,000. A drop below $45,000 could indicate further weakness, with potential targets at $40,000.
What factors could drive Bitcoin’s price higher?
Bitcoin whales have significantly increased their activity, demonstrating renewed interest and confidence in Bitcoin. Some analysts believe there is a strong chance that Bitcoin could reach $60,000 in the coming weeks. Over the past 37 days, the launch of nine spot Bitcoin ETFs has accumulated a total of 264,232.74 BTC, worth nearly $13 billion. Notably, BlackRock’s IBIT ETF holds 43% of this total, with 115,989.80 BTC.
With the growing involvement of institutional investors, Bitcoin’s price could continue to climb, with $60,000 being a key target if it breaks through the $55,000 resistance level.
What could cause a downturn for Bitcoin (BTC)?
If Bitcoin falls below the critical support level of $50,000, the next support may be around $45,000. Retail investor activity has declined, despite the recent surge in Bitcoin’s price. This is evident from the drop in the creation of new Bitcoin addresses.
The volatile nature of cryptocurrencies may also cause fear among investors, leading to further sell-offs if negative news surfaces in the crypto market. Additionally, the macroeconomic landscape remains uncertain, with central banks continuing to maintain high interest rates to combat inflation, which could negatively impact risk-on assets like Bitcoin.
What do analysts and experts say?
Bitcoin has surpassed $52,000, and analysts are weighing whether it will continue to gain bullish momentum. Bitcoin has risen nearly 100% over the last six months due to excitement surrounding the launch of Bitcoin ETFs and the demand they generated. Coinbase analysts believe that Bitcoin will remain well-supported in the next three to six months as more institutional players adjust to the ETF reality.
Whale activity is on the rise
Anthony Scaramucci, founder of SkyBridge Capital, has predicted a substantial price increase for Bitcoin, projecting that the price could rise four times by Bitcoin’s halving. On-chain data also shows heightened whale activity, with wallets holding 1,000 to 10,000 BTC adding around 249,000 BTC worth $12.8 billion in 2024 alone.
Despite this, smaller investors holding between 100 to 1,000 BTC have sold over 151,000 BTC since the start of the year.
