Bitcoin (BTC) could surge to a new high after the cryptocurrency recently printed a fresh bull flag amid growing demand from institutional investors.
Roughly two weeks after setting its current all-time high at $73,750, experienced market analyst Ali Martinez is now tipping Bitcoin to break that record in the coming days. The forecast is based on a technical analysis of Bitcoin’s 4-hour chart, which shows a new bull flag on that timeline.
A bull flag is an indicator of the continuation of an uptrend. In Bitcoin’s case, the recent drop below $61,000 paved the way for the formation of a bull flag. Following the downtrend, Bitcoin bounced back within the $67,000 to $70,000 zone for a consolidation phase.
The asset has now established a foothold well above $70,000 and could reach as high as $77,000 based on the current bull flag pattern. Nonetheless, Martinez does not put a timeline for the projected 10% increase.
#Bitcoin appears to be breaking out of a bull flag on the 4-hour chart! If $BTC holds above $70,000, we could see a surge of nearly 10% to a new all-time high of $77,000! pic.twitter.com/MPVB70p9DU
— Ali (@ali_charts) March 28, 2024
TradFi Taking Over Bitcoin
For most of its 13-year existence, Bitcoin has largely been an asset owned majorly by retail investors. However, that designation has since changed even more clearly with the recent launch of spot Bitcoin ETFs in the United States.
These funds, mostly backed by institutional players, now hold an estimated 4% of the total Bitcoin supply. On-chain data also attests to this move, including a deviation from BTC ownership distribution in previous bull cycles.
As CryptoQuant data shows, the current market cycle is seeing old whales (or existing large Bitcoin owners) selling their portfolios to new whales (traditional financial institutions). This phase is different from previous runs where BTC flowed from existing whales to retail investors.
Old whales are selling #Bitcoin to new whales(TradFi), not retail investors. This can be clearly observed on-chain.
Chart by @AxelAdlerJr pic.twitter.com/L8tWWvcmfb
— Ki Young Ju (@ki_young_ju) March 28, 2024
Meanwhile, optimistic Bitcoin investors argue that this change in supply dynamics could increase BTC’s value. Several bullish predictions tip Bitcoin to trade anywhere between $100,000 to $150,000 this year, while the most eye-catching of them expects prices as high as $500,000 by 2025.
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