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As Bitcoin has broken past the $71,000 threshold, analyst Egrag Crypto is eyeing a bullish rally to over $100K.
Over the last 24 hours, Bitcoin has bullishly moved past key resistance levels, reaching a notable milestone above $71,000. This rise represents a significant recovery, as it had not reached this level since June. The ongoing momentum has sparked speculation of further gains, driven by technical patterns and growing institutional demand.
Broadening Wedge and Triangle Breakout
Egrag Crypto, an analyst on X, highlighted Bitcoin’s breakout from a descending broadening wedge pattern. This bullish setup is confirmed by Bitcoin’s retest and rebound off the upper boundary of the wedge.
According to Egrag, Bitcoin maintaining a price above $67,100 is crucial for sustaining this bullish trend. His analysis projects Bitcoin’s target range between $102,000 and $110,000, based on the height of the wedge and broader market dynamics.
Meanwhile, veteran analyst Peter Brandt has offered a comparable perspective on Bitcoin’s uptrend. He focused on a triangle breakout to justify a potential rise above $94,000, $160,000, and $230,000. Brandt’s analysis identifies an inverted expanding triangle on a semi-logarithmic scale, which recently flipped from a bearish to a bullish outlook.
With Bitcoin now trading above the key resistance level of $69,985, this breakout suggests further bullish momentum. Maintaining support above the $70,000 level could provide the foundation for additional gains, positioning $94,000 as the next potential target.
Institutional Demand Outpaces Retail
Amid these speculations, institutional interest in Bitcoin continues to grow, with significant inflows observed in custodial wallets. Ki Young Ju, the CEO of CryptoQuant, recently noted that over the past year, 278,000 BTC flowed into U.S. spot ETFs, largely driven by retail demand.
#Bitcoin institutional demand in custodial wallets is rising.
Over the past year, 278K BTC flowed into U.S. spot ETFs (80% retail) vs. 670K BTC into whale wallets (1K+ BTC, excluding exchanges/mining pools).
In custodial wallets, institutional demand is twice that of retail. pic.twitter.com/OsxS7x3kEL
— Ki Young Ju (@ki_young_ju) October 29, 2024
In comparison, 670,000 BTC flowed into whale wallets, characterized by holdings of over 1,000 BTC. Ju noted that institutional demand for custodial wallets is double that of retail, with whale wallets serving as a superset of custodial wallets. His analysis further suggests that most ETF custodial wallets hold less than 1,000 BTC, while non-ETF custodial wallets maintain larger balances.
This suggests that large entities might be positioning themselves for a potential long-term bullish outlook, as demand typically precedes price surges.