Bitcoin (BTC) has shown signs of recovery in recent days following a sharp drop in early October. After falling below key support levels, the asset has bounced back, giving investors hope that a significant rally could be on the horizon.

For BTC to experience a major surge, it must flip a critical resistance level into support. The next few days will be crucial in determining whether the cryptocurrency can break through this barrier and sustain the momentum needed for further highs.

Bitcoin supporters are back

Institutional interest in Bitcoin has resurfaced, marking a significant shift in market sentiment. On Monday (8), spot Bitcoin ETFs saw the largest inflows, with $235 million entering the market.

This followed several days of outflows, indicating a renewed appetite for the cryptocurrency among ETF investors. The capital inflow suggests that both institutional and retail investors are once again viewing Bitcoin as a valuable asset, contributing to the bullish outlook.

This increase in interest is a positive indicator for Bitcoin’s price trajectory. When institutions start accumulating, it usually signals confidence in the asset’s future. Increased flows into spot BTC ETFs also reflect broader market interest, further supporting the possibility of the asset reaching its 20% rally target in the near term.

IBITFBTCBITBARKBBTCOEZBCBRRRHODLBTCWGBTCBTC27 Set 2024110,8123,612,9203,13,30,03,311,20,026,20,0494,430 Set 202472,28,3(9,7)(9,5)0,00,00,00,00,00,00,061,301 Out 202440,8(144,7)(32,7)(84,3)0,00,00,0(15,8)0,0(5,9)0,0(242,6)02 Out 2024(13,7)21,1(11,5)(60,3)0,00,00,00,00,00,00,0(64,4)03 Out 202436,0(37,2)2,6(58,0)2,40,00,00,00,00,00,0(54,2)04 Out 20240,013,615,35,30,00,00,05,30,0(13,9)0,025,607 Out 202497,9103,713,112,62,50,00,05,40,00,00,0235,2

Spot Bitcoin ETF net flows. Source: Farside

Additionally, long-term holders (LTHs) continue to demonstrate strong conviction in the cryptocurrency, further boosting macro momentum. The Hodlers Net Position Change indicator has been showing positive numbers since mid-August, demonstrating that LTHs are in accumulation mode. This trend continues as recent data indicates that LTHs are once again increasing their positions.

Sustained accumulation by long-term holders suggests that these key market participants believe in the potential for future price appreciation for Bitcoin. As LTHs hold onto their assets, the circulating supply reduces, creating a more favorable environment for a potential price increase. This macro momentum could help propel Bitcoin toward the long-awaited 20% rally.

US spot Bitcoin ETF balance. Source: Glassnode

Read more: Top 5 Most Secure Bitcoin Wallets of 2024

Price forecast

Currently at $62,273, Bitcoin price has already broken out of a double bottom pattern formed in September. However, the price is now once again trading below the neckline of the double bottom pattern.

The asset has yet to gain enough momentum to realize the 20% rally predicted by the pattern. The price target remains at $75,979, which would surpass the previous all-time high of $73,787.

In fact, the factors driving institutional interest and long-term holder accumulation indicate that Bitcoin could attempt another rally. This will be confirmed if BTC breaks above the $63,068 resistance and converts $65,000 into support. Such a move could trigger the next leg of the rally, reinforcing the bullish thesis.

Bitcoin Price Analysis. Source: TradingView

However, if Bitcoin fails to break above $63,068, it could retrace to $59,666. Losing this support would invalidate the double bottom pattern and also jeopardize the bullish outlook, potentially leading to a deeper correction.

The article Bitcoin (BTC) Price Prediction: What to Expect Today? was first seen on BeInCrypto.