This week, Bitcoin has broken over a resistance level and is now attempting to reach new all-time highs.
Prior to Thursday, US spot Bitcoin ETFs saw the longest run of inflows since the middle of July, at $1.86 billion.
After the fourth halving, Bitcoin's behavior was quite similar to the third halving, when values rose dramatically.
In pursuit of a new ATH, Bitcoin (BTC) surged by about 8% this week up until Friday, when it broke through its resistance level. This week's $1.86 billion inflows demonstrated the greatest run of inflows since mid-July, lending credence to the idea that institutional demand is driving up Bitcoin's price. The present Bitcoin cycle is similar to the third halving, when values rose dramatically, according to rising institutional reports and apparent demand.
Demand from institutions is on the increase for Bitcoin.
This week, Bitcoin's price was sustained by institutional demand. Data from Coinglass shows that US spot Bitcoin ETFs saw $1.86 billion in net inflows over the course of the week, with four consecutive inflows occurring up to Thursday. The increased demand for Bitcoin among institutional investors is shown by this surge in inflows.
The Cryptoquant weekly study sheds light on the growing demand for Bitcoin theory. There seems to be a recent uptick in interest in Bitcoin, with apparent demand exceeding 177,000 BTC, according to the study. This has traditionally occurred before substantial price rallies to new peak highs in 2020–2021, and 2024, as seen in the graph below; so, it is clear that more demand growth is necessary for a sustained advance toward new record highs.
Also, according to another research from Coinbase Institutional, the behavior of BTC following the fourth halving is the most similar to the performance after the third halving, when values were flat for a while before a sudden surge within a year.
Bitcoin demand may be on the increase, according to on-chain measures and reports, but traders should proceed with caution and keep an eye on Tesla's latest capital transfer. Arkham Intelligence reports that this week Tesla transferred $760 million worth of Bitcoin to several wallets. It is not yet known if this money is being moved within or sold.
"The effect would still be little over half of what the German government experiences, even if they were to sell. "As of today, Tesla's realized profit is $515 million, while theirs was $816 million," tweeted CryptoQuant CEO and founder Ki Young Ju.
Bitcoin price prediction: $73,777 ATH
On the weekly chart, Bitcoin, the most valuable cryptocurrency by market cap, is bursting out of the downward-sloping parallel channel pattern. A breakout of this pattern, verified by a weekly close above the upper boundary line, supports the bulls. It is produced by combining numerous weekly closes with two trendlines (from early March to October).
A new all-time high (ATH) of $78,955 is projected by the pattern's technical goal, which is determined by comparing the distance between the two trendlines.
Bullish momentum is gathering steam, according to the Relative Strength Index (RSI) momentum indicator on the weekly chart, which is now trading at 58, which is above its neutral threshold of 50 but still far below overbought circumstances.
Following Tuesday's breakout and closing over the $66,000 resistance mark, the daily chart likewise shows indications of strength. As of this writing on Friday, it is trading at around $67,900, and it is still gradually rising.
Assuming the $66,000 level remains a support, Bitcoin's current rise should resume, with the goal of retesting the $70,079 high set on July 29. Assuming the $70,079 close was successful, Bitcoin will next aim for the $73,777 ATH, which is the current all-time high.
Trading close to its overbought level of 70, the Relative Strength Index (RSI) indicator on the daily chart is at 68. Traders should avoid adding to their long positions if it reaches the zone on a closing basis, as this might enhance the likelihood of a retreat. But the RSI being in the overbought zone is another possibility if the rise persists.
