Bitcoin Price Could Reach $71,000: Here's Why

The price of Bitcoin is showing strong bullish signals, with market conditions indicating a potential surge to $71,000 after breaking through $65,000 on Wednesday, July 17, 2024.
Several factors could push BTC back toward its all-time high of $73,000. Here’s an explanation of these factors:

Historical Patterns

Crypto analyst Rekt Capital projected on his X account that breaking through $65,000 is the first step toward a price range of $65,000 to $71,500.

Image: Rekt Capital's tweet about BTC price. Source: Rekt Capital

His opinion is based on historical patterns he has observed over time. According to him, breaking the $65,000 level indicates that Bitcoin is ready to move into a higher price range, between $65,000 and $71,500.

Strengthening Long Positions

According to Coinglass data, long positions have strengthened by $1.7 billion in the last hour. Traders' confidence in the potential rise of BTC price is also reflected in the 13% growth in Open Interest (OI) over the past five days. Bitcoin's OI now stands at $34 billion.

Open Interest, the total number of outstanding Bitcoin options contracts, shows increased market activity. This surge indicates that more traders are entering the market, reflecting increased confidence in Bitcoin’s future price movements.

Bitcoin ETF Inflows

Image: Bitcoin ETF inflow and outflow table. Source: Farside

On the other hand, inflows into Bitcoin ETFs also contribute to this positive trend. BTC ETFs have accumulated over $1 billion in the last three trading days without any outflows. Strong participation from institutional and retail investors reflects bullish sentiment in the market.
BlackRock’s iShares Bitcoin Trust (IBIT) leads the inflow with $260.2 million, while Fidelity’s Wise Origin Bitcoin Fund (FBTC) received $61.1 million.

Supporting External Factors

Another factor that could drive BTC prices to $71,000 is the increasing chances of Trump winning the US presidency, as tracked by Polymarket.

If Trump wins, the US crypto industry is expected to revive due to his more crypto-friendly approach during his campaign. Trump is supported by several prominent crypto figures and has received crypto donations worth billions of rupiah.

With various supporting factors, from technical analysis to market sentiment, Bitcoin shows potential to reach the $71,000 level. However, investors should remain cautious of market volatility, which can change at any time.

conclusion

Bitcoin’s potential surge to $71,000 is supported by a combination of historical price patterns, strengthening long positions, and significant inflows into Bitcoin ETFs. Analysts like Rekt Capital suggest that breaking the $65,000 threshold is a strong indicator that Bitcoin is poised to enter a higher price range. This is further bolstered by increased trader confidence and market activity, as evidenced by the $1.7 billion boost in long positions and the 13% growth in Open Interest, reaching $34 billion.

Additionally, external factors such as the political landscape in the United States could also play a crucial role in Bitcoin’s price movement. The possibility of Trump’s return to the presidency, with his crypto-friendly stance, adds another layer of optimism among investors. This sentiment is mirrored by the substantial inflows into Bitcoin ETFs, demonstrating robust institutional and retail investor interest. While the path to $71,000 seems promising, investors should remain vigilant about the inherent volatility of the cryptocurrency market.

Read too : Analysts Predict Ethereum Will Outperform Bitcoin: Here’s Why!

*Disclaimer:
This content aims to enrich reader information. Always conduct independent research and use disposable income before investing. All buying, selling, and crypto asset investment activities are the reader's responsibility.