Following the much-anticipated Bitcoin 2024 conference in Nashville, Tennessee over the weekend, a noticeable surge in positive market sentiment pushed the price of Bitcoin to a one-month high of $70,000 on Monday.
Analysts are now looking at the possibility of an extended supercycle, with market expert Dr. Profit suggesting that the recent rally could be the start of a major uptrend with plenty of room to run.
Bitcoin Price Prediction
According to a recent study a report Dr. Profit says the current price action is the first stage of this potential supercycle, noting that during the 2021 bull run, he accurately predicted Bitcoin’s collapse to around $18,000, followed by the FTX-induced capitulation event, where it reached $15,400.
“At this point, I have announced that I will invest everything I have in the 2021 bull market gains in the market at prices between $16,000 and $18,000,” Dr. Profit stated. “This lower price is historically significant and is unlikely to be revised.”
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The analyst also explained the different stages of the current situation. Market cyclehighlighting the “pre-bullish” phase marked by resistance at the $38,500 level, which had to be broken to enter the second pre-bullish phase.
Dr. 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 introduction of Bitcoin Exchange Traded Fund (ETF) by BlackRock in June 2023.
According to the analyst, the “golden bull” phase, as shown in the chart above, came after the approval of the BlackRock Bitcoin ETF, and saw traditional financial players enter the cryptocurrency market, making the $48,000 to $74,000 range one of the most important support levels to defend during the upcoming bull market.
“This area of golden bullishness will represent or be very close to the bottom of Bitcoin in the next bear market,” Dr. Profit explained. “And again, this area is the entry point for BlackRock investors, and they will defend it at all costs during this bull market.”
Given these levels that could support the BTC price in the coming months, Doctor Profit Technical Analysis He points out that the initial target for this supercycle was set at $86,000, with expectations ranging between $110,000 and $120,000 in a conservative scenario.
However, Dr. Profit noted that in the most optimistic scenario, Bitcoin could rise to between $180,000 and $220,000 if the price rises above $70,000 and stabilizes above this important level.
Investor confidence hits peak
In addition to the bullish sentiment, a report Data from CoinShares showed that Bitcoin saw a healthy $519 million in inflows in the past week, bringing its monthly inflows to date to $3.6 billion and year-to-date inflows to a record $19 billion.
The company noted that this surge in flows and investor confidence can be attributed to the potential use of Bitcoin by the US government as a strategic reserve asset following Donald Trump’s speech on Saturday, as well as the increased likelihood of an interest rate cut by the Federal Reserve in September 2024.
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like Reported Former US President Donald Trump, in an article published by our sister site Bitcoinist, confirmed his plans to create a national reserve of Bitcoin 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 Instead of participating in market sell-offs that may ultimately affect price action and potential upward movement.
At the time of writing, the largest cryptocurrency in the market is trading at $68,800, recording price gains of 1.3% and 2.3% in the 24-hour and 7-day timeframes, respectively.
Featured image by DALL-E, chart by TradingView.com
