Bitcoin Price Prediction – Why BTC Could Soon Rocket to $97k

Highlights:

• Bitcoin is up 1% intraday, with a drop in trading volumes pointing to holder confidence.
• Treasury buybacks and a pro-cryptocurrency US government make the case for more Bitcoin upside.
• Bull flag pattern in a positive macro environment puts $97,012 BTC in focus.

Bitcoin is off to a calm start this week after recording strong gains for most of last week. When writing, Bitcoin was trading at $77,095.74, up 1.32% in the week. While the price is making marginal gains, intraday trading volumes are flat. At press time, Bitcoin trading volume had dropped 0.16% to $32.14 billion. 

The slight drop in trading volume is a positive signal, suggesting that the average Bitcoin holder is not keen on taking profits. Such a pointer to confidence suggests that Bitcoin still has room for further gains. A couple of macro factors could support such prospects for Bitcoin. 

Federal Treasury Buybacks Put Bitcoin On Course For More Gains

One of them is the Federal Reserve’s move to Treasuries buybacks. The move is expected to shore up liquidity in the markets going forward. The move is also widely expected to weaken the dollar over time and drive Treasury yields lower. This further makes investing in risk-on assets a better option than holding on to government paper. Given that Bitcoin appears undervalued relative to other risk-on assets, such as stocks, the odds are high that capital will continue to rotate into Bitcoin. 

Rising Bitcoin ETF Inflows Could Push Bitcoin Higher in the Short Term

The pivot into Bitcoin is also evident in the growing inflows into Bitcoin ETFs. After months of weakness, Bitcoin ETFs showed a surge in inflows last week. Data shows that inflows remained net positive through the week. Thursday, in particular, saw a spike in inflows, topping $1.6 billion by Thursday last week.

Spot Bitcoin ETFs took in approximately $606 million on Thursday, bringing total inflows from Monday through Thursday to roughly $1.6 billion. That is a meaningful amount of institutional demand returning to the market and another sign that capital is beginning to position for…

— Bobby A (@Bobby_1111888) August 21, 2026

As institutional demand continues to rise and long-term holders do not liquidate, Bitcoin is likely to see significant buying pressure. The impact is that the price could spike even further, potentially setting Bitcoin on course for a short-term rally to $100k or more. 

Pro-Cryptocurrency Government in the US Adds to BTC’s Outlook

Even better for Bitcoin is that the regulatory environment is improving. From the recent White House cryptocurrency summit, it became clear that the current US administration was actively pushing for more pro-cryptocurrency regulations. Trump’s push for the Senate to pass the CLARITY Act has also sparked optimism that the Act could become law within the year. This pro-cryptocurrency environment is likely to attract more capital to Bitcoin and potentially drive it to new highs in the foreseeable future. 

Short Squeeze Adds to the Buying Pressure Around Bitcoin

Bitcoin is also getting a boost from the continued pressure that the ongoing price action is piling on short sellers. The sudden price rally last week saw Bitcoin push through critical resistance levels. This means all the short positions opened at these levels are being forced to cover. 

As they do so, they are adding to the existing buying pressure, further putting Bitcoin on course for more gains. For context, over $4 billion in Bitcoin short positions were liquidated last week, turning all those sellers into forced buyers. Overall, there is a confluence of positive factors that make the case for a short- to medium-term bull rally for Bitcoin.

THIS WEEK: 📈 Bitcoin and Ethereum prices soared amid $4+ billion in short liquidations, near-billion-dollar ETF inflows, and crypto regulatory support from the White House, SEC, and CFTC.

Is the bear market officially over?

Tap in to learn what we should expect from the…

— CoinMarketCap (@CoinMarketCap) August 23, 2026

Technical Analysis – Bull Flag Patterns Hint at More Gains Short Term

After a three-day parabolic rally last week, Bitcoin has formed a bull flag. This pattern usually hints at a continuation of the rally. If Bitcoin rallies through last week’s high of $79,302, the pattern would be confirmed.

In such a scenario, a rally to $97,012 could follow. On the other hand, if bears take control and a breach of Sunday’s low at $75,593 occurs, the bullish setup would be invalidated. In such a scenario, Bitcoin could drop to the $62,612 major support in the short term. Of these scenarios, a rally to $97,012 is more likely. This is due to the confluence of positive factors around Bitcoin in the short term.