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Bitcoin Price Prediction – Why BTC Could Soon Rally to $100K

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Highlights:

  • Bitcoin is showing signs of a decoupling from stocks
  • Decoupling could see capital flow into Bitcoin rise as investors seek growth
  • A surge in momentum could push Bitcoin to $100k in the short term

Bitcoin is making minor gains in the day. At the time of going to press, Bitcoin was trading at $88,392, up by 0.78%. The rise was accompanied by a 42% increase in volumes, which signals that investors are getting interested in Bitcoin again.

Bitcoin Finally Decoupling from Stocks

This bump in activity comes amid growing evidence that Bitcoin is decoupling from stock indices. This shows that investors increasingly consider it a safe haven during economic uncertainty. The persistent decline in the value of the U.S. dollar provides additional impetus for increases in Bitcoin’s price. The Dollar Index (DXY) fell to its lowest value since March 2022, plunging below the 99 mark. As the dollar weakens, Bitcoin becomes increasingly attractive to savers and investors amid economic turmoil.

Signs of Institutional Confidence in Bitcoin Emerge

Analysts and institutional investors are also increasingly bullish on Bitcoin. QCP Capital recently adopted a bullish stance, noting growing interest in Bitcoin as a macro hedge. After suffering heavy redemptions the prior week, QCP Capital noted that Spot Bitcoin ETFs experienced inflows of $13.4 million last week, which suggests that institutions might be returning.

Another key narrative lifting Bitcoin is the growing belief that the U.S. Treasury may soon implement a debt buyback program. Arthur Hayes, co-founder of BitMEX, referred to such a development as a “bazooka” that has the potential to hyperinflate markets with liquidity and send Bitcoin far beyond the $100,000 mark. 

Chart Patterns Signal Bitcoin Price Bullish Momentum Is Building Up

On the technical front, Ryan Lee, Chief Analyst at Bitget Research, has noted a “descending wedge breakout” on Bitcoin’s chart. Given macro conditions, this reinforces bullish Bitcoin investor sentiment. 

Some chart analysts have more optimistic outlooks for Bitcoin. Jamie Coutts of Real Vision expects it to reach $132,000 by the end of 2025, while bitcoin economist Timothy Peterson anticipates it to rise to $138,000 within three months based on historical trends.

Strategy’s New Bitcoin Buying Spree Could Reignite Markets

Adding to analysts’ bullish outlook is the fact that Michael Saylor’s Strategy has started buying huge amounts of Bitcoin again. Between April 14 and 20, the company bought 6,556 BTC, spending $555.8 million at an average price of $84,785 per coin. This brings the company’s total holdings to 538,200 BTC, valued at over $36 billion.

Strategy’s most recent purchase was after acquiring 3,460 bitcoins just weeks prior for over $280 million. The firm has recorded a 12% return on its investment in Bitcoin this year, solidifying its title as the largest corporate holder of Bitcoin.

Technical Analysis – Bitcoin Price Trading In a Bullish Channel

Bitcoin has been in a bullish channel since April 20, forming higher lows. This is an indicator that bulls are firmly in control at the moment.

Bitcoin Price
Source: TradingView 

However, for bulls to sustain momentum, they need to rally through the $88,519 resistance. If this happens, then a rally to $100k could follow. On the other hand, if bulls fail at the $88,519 resistance, then a correction to $86,790 support could follow. 

Recap

Bitcoin is finding some footing and decoupling from the stock markets. Weaker fiat currencies, turbulent geopolitical landscapes, institutional inflow, and potential Treasury maneuvering position Bitcoin for sustained momentum. Another run in prices could push it to $100k in the near term.

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