The Bitcoin (BTC) price rose to $65,000 on July 16 after traders’ concerns about the German government’s BTC sell-off subsided. However, there are concerns that the Bitcoin price could fall to $58,000 as Mt. Gox begins moving $6 billion worth of coins from cold wallets to various addresses.
Despite this, market analysts believe Bitcoin’s “post-halving” growth trajectory is still valid.
Let’s take a look at why analysts think Bitcoin’s bull market is still going strong.
Coinbase Premium Turns Positive
Bitcoin may finally break $65,000 sooner than expected as spot buying increases on Coinbase Pro
According to FalconX Research, the Coinbase Premium Index, which measures the difference between the price of BTC on Coinbase Pro and Binance, turned positive, rising by 0.1% — “the most recent level since mid-May.”
That said, buying on Coinbase appears to be bullish compared to other exchanges like Binance.
A positive reading on the Coinbase Premium Index could be a sign of long-term support. Conversely, a negative premium indicates strong spot selling on Coinbase.
David Rowant, head of research at FalconX Research, believes that the Bitcoin price is headed for a “massive rally” similar to the one we witnessed from October 2023 to March of this year, when BTC rose by around 170% from $26,000 to a new all-time high of $73,835.
“Something tells me the next six to 12 months are going to be great, but probably volatile.”
Increased capital inflow into Bitcoin investment products
Another factor that makes investors believe that Bitcoin’s bull run is not over yet is the continued inflow of funds into Bitcoin investment products.
“Cumulative net ETF flows reached a new ATH last week,” author and independent analyst Timothy Peterson declared in a July 15 post on the X social media platform.
Peterson noted that U.S. spot Bitcoin ETFs have seen inflows for seven straight days, bringing total inflows to a record $16.11 billion, according to data from Farside Investors.
Peterson said that this indicator puts the Bitcoin price at $71,000, meaning that increased demand from institutional investors is likely to have a positive impact on the BTC price.
To put this into context, Bitwise’s senior investment strategist Juan Leon said the $16 billion in inflows into spot BTC ETFs in the six months since their launch on January 11 is “more sovereign capital than any country has received in the second half of 2023.”
“Strong institutional demand for BTC is driven by spot BTC ETFs (>$15B inflows) as well as CME BTC futures, which hit new highs in Q2,” Leon explained.
Likewise, according to CoinShares’ latest weekly report on digital asset fund inflows, Bitcoin asset investment products saw the fifth-largest weekly inflows on record, recording $1.347 billion in inflows in the week ending July 12, bringing inflows to a record $17.221 billion this year.
James Butterfill, head of research at CoinShares, explained that the recent drop in BTC price to $53,000 was the main reason for the surge in inflows, saying that investors took advantage of Bitcoin’s “price weakness” to buy more during the bear market.
“We believe that the price weakness due to the German government’s Bitcoin sell-off and the reversal in sentiment due to the lower-than-expected US CPI prompted investors to increase their positions.”
Bitcoin bounces back from range after halving
From a technical standpoint, anonymous Bitcoin analyst Rekt Capital argued that Bitcoin’s recent reversal above $65,000 has seen a significant change in trend.
Rekt Capital said in a July 16 post on X that Bitcoin had successfully recovered its “post-halving reaccumulation range.”
The analyst was referring to the BTC trading range in the weeks following the Bitcoin halving in April.
“The importance of this recovery cannot be underestimated.”
Analysts at cryptocurrency data provider Ecoinometrics said that three months after the halving, Bitcoin is trading at the lower end of its growth range.
“It’s been almost three months since the fourth halving, it’s time for something to happen,” they declared, setting ambitious targets for the Bitcoin price.
“Well, assuming the same growth rate as the last 3 cycles, we expect 1 BTC to be between $140,000 and $4,500,000 per coin. Starting at $63,000.”
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.