Bitcoin to $90,000 by the end of 2024? How this prediction can become reality

  • Bernstein predicted a potential market expansion for Bitcoin and Ethereum ETFs.
  • Technical analysis supports bullish Bitcoin trends despite recent consolidation phases.

Despite recent fluctuations, Bitcoin’s remains [BTC] The market trajectory remains a focus for investors and analysts alike.

Over the past week, Bitcoin has struggled to maintain its momentum above $70,000, although it reached $71,000 earlier last week.

However, that price level was short-lived as it subsequently retreated and was trading at $68,122 at the time of writing. This was a decline of 2.4% in the last seven days, although there has been a modest recovery of 0.6% in the last 24 hours.

Bitcoin: Market Sentiment

Amid these price shifts, Bernstein, a leading asset management firm, has done just that issued a bullish view on the potential growth of Bitcoin and Ethereum [ETH] Exchange Traded Funds (ETFs).

According to a recent research report from Bernstein analysts Gautam Chhugani and Mahika Sapra, the crypto ETF market could expand to a substantial $450 billion based on expected cryptocurrency prices.

They forecast inflows of over $100 billion into crypto ETFs over the next 18 to 24 months, with a significant year-end price target of $90,000 for Bitcoin, and an ambitious cycle high of $150,000 in 2025.

Further analysis from trading firm The Birb Nest as long as from a technical perspective, which underlines the bullish indicators in the Bitcoin market.

Their research shows that the 50- and 200-week simple moving averages (SMAs) are $43,950 and $35,358 respectively, providing strong market support levels that are fueling investor optimism.

Moreover, the correlation coefficient with the S&P 500 index is moderately positive at 0.36, indicating a favorable outlook for Bitcoin in conjunction with the broader financial markets.

Furthermore, Bitcoin Production Cost (BPRO) and 200-day SMA offer significant trend support at $62,580 and $53,516 respectively.

The Relative Strength Index (RSI), which stood at 59 at the time of writing, indicated growing appetite for bargains, although the Momentum index is relatively stagnant at 49.

While the market’s Fear & Greed Index at 74 indicates a sentiment of ‘greed’, The Birb Nest advises caution to limit the risks associated with potential over-expansion of the market.

Strategic insights and future perspectives

Renowned crypto analyst Willy Woo contributed additional insights into Bitcoin’s recent market behavior.

He highlighted that demand for spot Bitcoin ETFs, especially with the recent shifts in market dominance from Grayscale to BlackRock, has significantly exceeded the supply of newly mined Bitcoins.

Source: Willy Woo

Woo also noted increased demand in the futures market, especially from retail traders, which has not yet reached levels that would indicate excessive speculative interest or fear of missing out (FOMO).

At the same time, there has been a notable accumulation of Bitcoin by whales, indicating a potential supply shock that could put upward pressure on prices in the near future.

However, not all Bitcoin statistics paint an optimistic picture.

Data from Glassnode revealed a significant drop in the number of receiving addresses, indicating a reduction in transaction activity or a consolidation of funds to fewer addresses.

Source: Glassnode

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Despite these concerns, AMBCrypto remains recently reported that the range from $66,200 to $66,700 contains a cluster of liquidation levels, indicating that Bitcoin may temporarily dip into this region.

Conversely, liquidity at $67,800 – which has already been tested – could provide the necessary momentum to push Bitcoin’s price back towards the $71,200 resistance level.

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