If BlackRock solves the $35 trillion U.S. debt problem, Bitcoin price will break out of this bullish pattern and reach six figures.
Bitcoin has been widely discussed after BlackRock, the world's largest asset manager, filed for a spot ETF. BTC options for institutional clients have since been approved. BlackRock added that as the U.S. debt approaches $35 trillion, it could attract institutional investors to invest in BTC. Top cryptocurrency analyst Mihir predicts that if Bitcoin (BTC) manages to break out of a multi-year consolidation pattern, its price could reach $120,000.
Prediction: Bitcoin price could reach $120,000
Views on BTC price action. Outlines a multi-year cup-with-handle technical pattern that is about to break out.
The Cup and Handle pattern is a bullish consolidation pattern consisting of a rounding bottom followed by a downward consolidation below a horizontal resistance level. The horizontal resistance level decisively turned into support, indicating a breakout. The target value of this pattern is obtained by measuring the depth of the cup and adding it to the breakout point. In this case, Mihir predicted a Bitcoin price of $120,000.
As Bitcoin has been going through a six-month consolidation, the inflows into spot ETFs have decreased. The $886 million inflows in July were the largest in the past two months. According to SoSo Value data, the total net inflows into spot Bitcoin ETFs since their launch on January 10 are $17.69 billion.
Institutions Accumulate Bitcoin
According to on-chain data provider Santiment, wallets holding between 100 and 1,000 and between 10,000 and 100,000 BTC are accumulating Bitcoin. Generally speaking, investors holding over $100,000 are considered savvy or institutional investors as the average retail trader does not have access to such funds. Additionally, not all wallets holding over $100,000 are worth paying attention to. Some wallets may belong to exchanges or crypto platforms and are therefore excluded. In this case, we excluded wallets between 1,000 and 10,000 BTC because historically, these investors have not demonstrated foresight and therefore do not provide meaningful insights.
As for investors holding 100 to 1,000 and 10,000 to 100,000 BTC, these investors accumulated funds before the bull run and showed foresight to profit near all-time highs. These investors accumulated BTC in the second and third quarters of 2021 and 2022 and profited when the price of Bitcoin rose to new highs. Similarly, these investors are accumulating funds again, indicating that they expect a major upward trend. Historically, the fourth quarter has been bullish with an average return of 98%, which is consistent with the top analysts' price prediction of $120,000/BTC for Bitcoin.
All in all, with just a few weeks left until the start of the fourth quarter, the outlook for Bitcoin is bullish. Moreover, the November presidential election and institutional demand for BTC could serve as tailwinds that propel the pioneer cryptocurrency past $100,000.
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