Bitcoin has been widely discussed after the world’s largest asset manager, BlackRock, filed for spot ETF. Since then, BTC Options for institutional clients have been approved. BlackRock adds that as the US debt pile approaches $35 trillion, it could attract institutional investors to BTC. Mihir, a top crypto analyst, forecasts Bitcoin’s (BTC) price could hit $120K if it successfully breaks out of a multi-year consolidation pattern.
Analyst Forecasts Bitcoin Price Could Hit $120K
Mihir, a popular crypto analyst, posted his thoughts on the ongoing BTC price action on X. His post outlines a multi-year cup-and-handle technical formation edging closer to breakout.
A cup-and-handle setup is a bullish consolidation pattern that contains a rounded bottom followed by a downward-facing consolidation below a horizontal resistance level. A decisive flip of this horizontal resistance into a support floor signals a breakout. The target for this setup is obtained by measuring the cup’s depth and adding it to the breakout point. In this case, Mihir’s forecast puts the Bitcoin price at $120K.
BTC/USD 1-week chart
BlackRock Notes $35 Trillion US Debt Pile Could Drive Institutions To BTC
Since BlackRock’s spot ETF filing in June 2023, Bitcoin, as an investment asset, has been popular in traditional finance circles. With fears of recession and US Dollar collapse, BlackRock warned of “concerns” surrounding the $35 trillion US debt pile. The world’s largest asset manager, BlackRock, also added that this debt pile could drive institutional interest in BTC.
Due to the six-month consolidation in Bitcoin, the spot ETF inflows have decreased in size. July’s $886 million inflow was the largest in the past two months. According to SoSo Value data, the total net inflow for spot Bitcoin ETF since its launch on January 10 is $17.69 billion.
BlackRock: US Debt
Institutions Accumulate Bitcoins
According to on-chain data provider Santiment, the wallets holding between 100 to 1,000 and 10,000 to 100,000 are accumulating Bitcoins. Generally, investors with more than $100K are considered smart money or institutions since that kind of money isn’t available to your average retail trader. Furthermore, not all wallets with more than $100K are worth keeping an eye on. Some could belong to exchanges or crypto platforms and are excluded. In this case, we’ve excluded 1,000 to 10,000 BTC wallets since, historically, these investors have not shown foresight and hence provide no meaningful insights.
As for the 100 to 1,000 and 10,000 to 100,000 BTC holders, these investors have accumulated before the bull run and have shown foresight to book profits closer to all-time highs. These cohorts accumulated BTC throughout the second and third quarters of 2021 and 2022 and booked profits as Bitcoin price rallied to new highs. Likewise, these investors are accumulating again, indicating they expect a massive uptrend. Historically, the fourth quarter has been bullish with an average return of 98% and falls in line with top analysts’ Bitcoin price prediction of $120K per BTC.
BTC Supply Distribution
All in all, the outlook for Bitcoin looks bullish with the start of the fourth quarter only a few weeks away. Furthermore, the presidential elections in November and institutional demand for BTC could serve as a tailwind propelling the pioneer crypto to beyond $100K.
The post Top Analyst Forecasts Massive Bitcoin Price Target Amid $35 Trillion US Debt Pile appeared first on CoinGape.
