Bitcoin Price Prediction – BTC Targets $82,100 as Institutional Buying Returns

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Bitcoin Price Prediction – BTC Targets $82,100 as Institutional Buying Returns

Highlights:

  • Bitcoin edges higher as renewed ETF inflows point to growing buying pressure.
  • Bitcoin could rally to $82,100 on softer US jobs data and easing rate hike fears.
  • Bitcoin has to contend with resistance at $65,000, with Middle East tensions posing a key risk.

Bitcoin (BTC) is making minor gains intraday, a continuation of the momentum built up over the weekend. When writing, Bitcoin was trading at $65,278.35, up 0.65% in the day. Bitcoin trading volumes are also on the rise, up 21.57% to stand at $14.95 billion. 

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The rising trading volumes alongside the price are a strong indicator that buyers are coming in strongly with the expectation that Bitcoin could be headed much higher in the short to medium term. Looking ahead, Bitcoin could keep pushing higher in the foreseeable future. 

Bitcoin ETFs Point to Growing Institutional Demand

A key factor that could drive momentum is the fact that institutional investors are starting to buy Bitcoin again. After months of weak ETF inflows, Bitcoin recorded net inflows of $853.5 million last week. This is the first time that Bitcoin has recorded such strong inflows since April.

As institutional capital starts to flow into Bitcoin, the odds are high that the price could push higher. That’s because Bitcoin has a low and capped supply, which means every dollar coming in is chasing a scarce asset. With risk-on sentiment taking root across the financial markets, Bitcoin ETFs could see even more gains in the short to medium term.

Softening US Jobs Market Could Drive More Capital Into Bitcoin

Bitcoin could also get a boost from the improving macro environment, especially around interest rates. Recently, there have been fears that the Federal Reserve could hike rates. This was driven mainly by fears around the Iran war and its impact on oil prices.

With both sides now back at the negotiating table, and oil prices dropping, inflation fears have dropped. The most recent US jobs data also shows a softening of the US job market. The impact is that markets are starting to price in either a rate cut or the Federal Reserve to hold rates as they are currently. This is a factor that could see capital flow heavily into Bitcoin ahead of the next FOMC in September. 

Shorts Liquidations Add to Bitcoin Upside Momentum

Bitcoin is also getting a boost from shorts liquidations. The latest data on Bitcoin shows that over 80% of total liquidations are shorts. Shorts getting liquidated means they are also being forced to buy Bitcoin to cover their positions. This is also emboldening leveraged buyers looking to take advantage of the rising momentum. The impact is that Bitcoin could see sustained momentum until there is an equilibrium between leveraged buyers and sellers.

Middle East Conflict a Major Price Risk for Bitcoin Short Term

Despite this rally, Bitcoin faces the risk of a correction in the short term. A key factor likely to drive this risk is the fact that Bitcoin is trading at a key resistance level at $65k. If Bitcoin only keeps making miniature gains around this price level, it could embolden short sellers again.

Such price dynamics are playing out at a time when there is a war situation in the Middle East. An escalation of this war could reignite risk-off sentiment in the markets. Cryptocurrencies, being a significantly higher-risk market than stocks, could mean Bitcoin takes a big hit in such a scenario.

Technical Analysis – Bitcoin Price Trading in a Narrowing Symmetrical Triangle

Bitcoin is trading in an increasingly narrow symmetrical triangle, an indicator that a breakout is imminent. If Bitcoin breaks out to the upside, a rally to $82,100.56 could follow.

BTC Price Chart
BTC Price Chart: TradingView

On the other hand, if there is a bearish breakout, Bitcoin could drop to $60k in the short term. Of these two scenarios, a rally to $82,100.56 is more likely. This is due to the confluence of positive factors in the macro environment. The most important of these macros is the recent US data that shows a softening in the jobs market.

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