- Bernstein predicted a potential market expansion for Bitcoin and Ethereum ETFs.
- Technical analysis supports Bitcoin’s bullish trends, despite recent phases of consolidation.
Despite recent fluctuations, Bitcoin [BTC] the trajectory of the market remains a focal point for investors and analysts alike.
Over the past week, Bitcoin has struggled to maintain its momentum above the $70,000 mark, although it reached $71,000 early last week.
However, this price tag was short-lived as it then retreated, trading at $68,122 at press time. That was down 2.4% over the past seven days, although there was a slight rebound of 0.6% over the past 24 hours.
Bitcoin: Market Sentiments
At the center of these price movements is Bernstein, a prominent wealth management company released a bullish outlook on the potential growth of bitcoin and ethereum [ETH] exchange-traded funds (ETFs).
According to a recent research report by Bernstein analysts Gautam Chhugani and Mahika Sapra, the crypto ETF market could expand to a substantial $450 billion based on projected cryptocurrency prices.
They predicted an inflow of more than $100 billion into crypto ETFs in the next 18 to 24 months, with a significant year-end bitcoin price target of $90,000 and an ambitious cycle high of $150,000 by 2025.
More analysis from business firm The Birb Nest if technical view, underlining bullish indicators in the bitcoin market.
Their study noted that the 50-week and 200-week simple moving averages (SMA) are at $43,950 and $35,358, respectively, providing a strong level of market support to fuel investor optimism.
Additionally, the correlation coefficient with the S&P 500 is slightly positive at 0.36, suggesting a favorable outlook for Bitcoin in correlation with the broader financial markets.
Additionally, Bitcoin Production Cost (BPRO) and 200-day SMA provide significant trend support at $62,580 and $53,516, respectively.
The Relative Strength Index (RSI) at 59 at press time indicated increasing buying interest, although the Momentum Index is relatively stagnant at 49.
While the market’s Fear & Greed index suggests “greed” sentiment at 74, The Birb Nest advises caution to mitigate risks associated with a potential market overhang.
Strategic knowledge and prospects for the future
Renowned cryptanalyst Willy Woo contributed additional insights into recent bitcoin market behavior.
He pointed out that demand from spot bitcoin ETFs, especially with the recent shifts in market dominance from Grayscale to BlackRock, has greatly outstripped the supply of newly mined bitcoins.
Source: Willy Woo
Woo also observed increased demand in the futures market, particularly from retail traders, which has not yet reached a level that could indicate excessive speculative interest or fear of missing out (FOMO).
At the same time, there has been a remarkable accumulation of Bitcoin by whales, indicating a potential supply shock that could put upward pressure on prices in the near term.
However, not all Bitcoin metrics paint an optimistic picture.
Data from Glassnode revealed a significant drop in the number of receiving addresses, indicating either a reduction in transaction activity or the consolidation of funds to fewer addresses.
Source: Glassnode
Is your portfolio green? Check out the BTC profit calculator
Despite these concerns, AMBCrypto recently reported that the $66,200 to $66,700 range contains a cluster of liquidation levels, suggesting that Bitcoin may temporarily fall into this area.
Conversely, liquidity at $67,800 – which has already been tested – could provide the necessary momentum to push Bitcoin price back to the $71,200 resistance level.