Bitcoin Price Prediction – Bitcoin ETF Inflows Remain Steady, Pointer To $60k BTC Soon
Bitcoin has been flat over the last 24 hours. However, trading volumes have increased by 50.29% to $32.57 billion in this period. As of 11:03 GMT+3, Bitcoin was trading at $51,562.
The rising Bitcoin trading volumes indicate the accelerated uptake of Bitcoin, especially by institutional investors. Institutions continue to buy more like the heavy Bitcoin buying experienced last week through the ETFs.
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Bitmex Bitcoin ETF Data Paint A Positive Picture For BTC
Bitmex Bitcoin ETF data from 20th Feb shows that there were inflows of $135.6 million into Bitcoin ETFs on Monday. This indicates that institutional money is buying Bitcoin heavily at the $52k range in anticipation of higher gains going into the future.
[1/3] Bitcoin ETF Flow – 20th Feb 2024
All data in. Solid day with +$135.6m of net inflow. Not as strong as last week, but solid pic.twitter.com/mtxXbSXy9u
— BitMEX Research (@BitMEXResearch) February 21, 2024
Besides institutional players, retail money also adds to the increasing activity around Bitcoin, even as the price remains unchanged mainly for days. The excitement has a lot to do with expectations around the upcoming Bitcoin halving, which is expected to reduce the amount of Bitcoin entering the market significantly. Investors anticipate that just like past Bitcoin halvings have led to significant price rallies, this one, too, could trigger a rally that would see Bitcoin top prices as high as $200k.
The increasing Bitcoin volumes when the price is range-bound reflects the rising capital inflows into Bitcoin, especially by institutional players.
Bitcoin Rangebound But Increased Buying Volumes Point To An Impending Bullish Breakout
The price of Bitcoin indicates a consolidation between $52,315 and $51,494. This accumulation period coincides with continued money inflows into Bitcoin ETFs, an indicator that institutional money is buying up Bitcoin in large volumes.
If buying volumes continue to rise and outpace short sellers, the $52,315 resistance would come into focus. Even though Bitcoin breaks through this resistance, $60k could come into focus within the week.
However, if buyers fail to breach the $52, 315 resistance, two scenarios could play out in the day. The first one is a continuation of the range-bound trading that has characterized Bitcoin this week. This could go on until there is a substantial increase in buying volumes that drown out the short sellers.
On the other hand, if short sellers take control and push Bitcoin through the $51,494 support, then $50k, which is now a major Bitcoin support level, could come into focus. Given the current market dynamics, there is little chance that Bitcoin could drop below $50k.
If anything, an upside breakout that pushes Bitcoin to $60k or more could be within reach in the week.
The Case For $60k Bitcoin This Week
Bitcoin’s potential to hit $60k is driven by the fact that demand has been on the rise for a while now. Bitcoin ETFs continue to record major inflows. The numbers have remained consistently high since last week. It indicates that institutional money is taking advantage of the price stability around the $51k price level to accumulate on Bitcoin. Given Bitcoin’s low supply, a confluence of institutional and retail money buying up the asset will likely trigger an upside breakout soon. It’s simple demand and supply.
Bitcoin FUD Drivers Dwindling Ahead Of Halving
There is also more optimism than FUD around Bitcoin at this point. Among the biggest drivers of optimism around Bitcoin is that governments now see BTC in a positive light (evident in ETFs) approvals and the upcoming halving.
With governments, especially the US government, becoming more friendly towards Bitcoin, this halving cycle could see more institutional and retail money at play than in the past. Since this is also a period when Bitcoin is at its utmost scarcity, the impact of new money chasing less than ever is expected to push Bitcoin to prices unimagined. In the short term, $60k is a reasonable target once the $52, 315 resistance is broken.
Then there are the psychological expectations around the halving that play against short sellers now and for the better part of the coming month. Overall, the expectation is that the halving leads to at least 2X rallies in BTC, which means more investors are betting on a rally than a major correction. If the $51,494 support holds, $60k BTC in a few days is easily attainable. The odds are in favor of Bitcoin bulls.
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Kamal Masri
Kamal is an experienced financial analyst with a demonstrated history of working in the Financial Market. Skilled in Equities, Capital Markets, Portfolio Management, Risk management, and Corporate Finance. Kamal has worked at some of the leading online finance publications providing his expert knowledge on cryptocurrency. Kamal has written widely on digital assets across the stock and crypto media space and beyond, including for Coindesk, Ethereum World News and The FinTech Times.
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