As Bitcoin (BTC) inches closer to the coveted $100,000 mark, optimism in the broader cryptocurrency market is palpable. Following a recovery that saw Bitcoin rise to approximately $97,800 last week, it has since retraced to around $94,340, reflecting a slight 0.4% decrease over the last 24 hours, according to CoinGecko data.
This comes on the heels of a significant sell-off in April, when Bitcoin dipped to as low as $74,000. However, renewed hopes for a new all-time high are emerging among investors and analysts of the market.
Bitcoin Bullishness Grows
The bullish sentiment surrounding Bitcoin has been further emphasized by crypto analyst Doctor Profit, who suggests that the cryptocurrency is on a strong upward trajectory. He confidently states that in a year, Bitcoin will likely not fall below the $100,000 threshold again.
Last week, Doctor Profit noted that Bitcoin has surged over 25% since his entry point at $77,000. He highlighted a critical breakout above the “Hammer Line,” a key resistance level he had previously identified at around $85,000, asserting that this breakout would pave the way for further gains.
One of the primary catalysts for this recent surge, according to the analyst, has been the aggressive accumulation of Bitcoin by US-listed exchange-traded funds (ETFs).
On Tuesday of the past week, these ETFs recorded nearly $1 billion in net inflows, marking one of the highest daily totals for the year. In just three trading days, a staggering $1.4 billion has been poured into Bitcoin ETFs, indicating a strong institutional appetite for the cryptocurrency during a period of market uncertainty.
Adding to the bullish narrative, Bitcoin’s liquid supply is dwindling at an alarming rate. Recent days have seen a significant decline in exchange reserves, as large buyers withdraw coins from centralized platforms to store them in cold wallets.
Reports from OTC desks indicate thin supply levels, suggesting that major accumulation is taking place behind the scenes. Even established financial giants like Fidelity have issued warnings about an impending Bitcoin supply shock, further fueling investor interest.
$100,000 Target Within Reach?
Doctor Profit also highlighted a notable development not only for BTC, but for the broader digital asset industry as Binance recently disclosed that it has received inquiries from multiple governments worldwide regarding strategic reserves of Bitcoin.
This signals a growing recognition among sovereign entities of Bitcoin’s potential role as a strategic asset, akin to gold. As countries contemplate their own Bitcoin reserves, questions arise about the availability of Bitcoin in the market and the implications of a supply shock.
Looking ahead, the analyst remains optimistic about Bitcoin’s trajectory. Following its recent momentum and the breakout above the Hammer Line, the $100,000 target appears increasingly achievable.
Doctor Profit maintains that there is no change to his previous assessment and anticipates that the Federal Open Market Committee (FOMC) meeting this week will further influence market dynamics. He continues to express confidence that Bitcoin could not only reach $100,000 but also establish a new all-time high in the coming weeks.
Featured image from DALL-E, chart from TradingView.com
