Following the highly anticipated 2024 Bitcoin Conference in Nashville, Tennessee, over the weekend, a notable spike in positive market sentiment drove the Bitcoin price to a one-month high of $70,000 on Monday.
Analysts are now eyeing the potential for an extended super-cycle, with market expert Doctor Profit suggesting that the recent rally could begin a significant uptrend with plenty of room to run.
Bitcoin Price Projections
According to a recent report by Doctor Profit, the current price action is the first phase of this potential super cycle, noting that during the 2021 bull run, he had accurately predicted Bitcoin’s crash to around $18,000, followed by the capitulation event triggered by the FTX collapse, where it hit $15,400.
“At this point, I posted that I am going all in with the 2021 bull market gains back into the market at prices between $16,000 and $18,000,” Doctor Profit stated. “This bottom price is historically significant and unlikely to be revisited.”
The analyst further explained the various phases of the current market cycle, highlighting the “pre-bull” phase characterized by resistance at $38,500, which needed to be breached to enter the second pre-bull phase.
Doctor Profit believes that this phase was driven by significant buying activity from Binance, Changpeng Zhao (CZ), Justin Sun, and Bitfinex whales, as well as the filing of the Bitcoin exchange-traded fund (ETF) by BlackRock in June 2023.
The “Golden Bull” phase, as seen in the chart above, followed the approval of the BlackRock Bitcoin ETF and saw the entry of traditional financial players into the crypto market, leaving the $48,000 to $74,000 range as one of the most crucial support levels that will be defended during the upcoming bull market, according to the analyst.
“This region of golden bull will mark, or be very close to the Bitcoin bottom for the incoming bear market,” Doctor Profit explained. “Again, this region is BlackRock investors’ entry, and at all cost they will defend it during this bull market.”
Considering these levels that could support BTC’s price in the coming months, Doctor Profit’s technical analysis points out that the initial target for this super cycle is set at the $86,000 threshold, with projections ranging between $110,000 and $120,000 in a conservative scenario.
However, Doctor Profit noted that in the most optimistic scenario, the Bitcoin price could soar between $180,000 and $220,000 if the price surges above $70,000 and consolidates above this milestone.
Investor Confidence Peaks
Adding to the bullish sentiment, a recent report by CoinShares showed that Bitcoin has seen healthy inflows of $519 million in the past week, bringing its month-to-date inflows to $3.6 billion and year-to-date inflows to a record $19 billion.
The firm noted that this surge in inflows and investor confidence could be attributed to the potential use of BTC by the US government as a strategic reserve asset following Donald Trump’s speech on Saturday, as well as the increased likelihood of a Federal Reserve rate cut in September 2024.
As reported by our sister site Bitcoinist, former US President Donald Trump reiterated his plans to create a national Bitcoin stash and turn the cryptocurrency into a strategic reserve asset for the US dollar.
Trump also promised that the US government would retain ownership of all BTC in custody rather than participate in a market sell-off that could ultimately affect price action and potential upward movement.
At the time of writing, the largest cryptocurrency on the market is trading at $68,800, registering price gains of 1.3% and 2.3% in the 24-hour and 7-day time frames, respectively.
Featured image from DALL-E, chart from TradingView.com
Source: NewsBTC.com
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