Is Bitcoin repeating its 2020 breakout? Here’s why $92.5K might be the next target

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8 Mar 2024

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YASHU GOLA
2 HOURS AGO

Is Bitcoin repeating its 2020 breakout? Here’s why $92.5K might be the next target

Rising Bitcoin ETF inflows and increasingly favorable technicals suggest that the BTC price might rise above $90,000 in the coming weeks.
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3:19
MARKET ANALYSIS
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Bitcoin
BTC
$67,411

price looks ready to rally toward or above $90,000 in the coming weeks due to a mix of supportive technical, on-chain and fundamental indicators.BTC price bull pennant taking shape

BTC’s price has entered a consolidation phase, moving sideways within a triangular formation resembling a bull pennant after achieving a new all-time high of $69,210.
BTC/USD daily price chart. Source: TradingView
Notably, traditional analysts see bull pennants as bullish continuation patterns that could increase prices as much as the previous uptrend’s height. This breakout typically accompanies an increase in trading volume.
Bitcoin’s chances of a breakout are currently considerable as the price consolidates, particularly after new all-time highs and other reasons discussed below. Thus, the next target could be around $92,500 in the coming weeks, up 35% from the current levels.

Increasing Bitcoin ETF inflows

Bitcoin’s price uptrend in recent weeks has coincided with the increasing capital inflows into the United States-based exchange-traded funds (ETF). Notably, these ETFs hold over $53 billion in reserves as of March 7, compared to $27.95 billion at their launch in January.
U.S. Bitcoin ETF balance. Source: Glassnode
Higher inflows into an ETF suggest that more investors are buying shares of the ETF, which, in turn, increases demand for the underlying assets. This is because the fund manager may need to purchase additional assets to ensure the ETF accurately reflects the index composition or sector it tracks.

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“It appears that the Bitcoin Spot ETF approval launched an accumulation that, if sustained, puts BTC at $100K by October 2024,” market analyst Timothy Peterson commented on X.
Related: Is Tesla buying Bitcoin again? BTC wallet data sparks curiosity
Moreover, the increasing ETF inflows come weeks ahead of the Bitcoin halving. Historically, halving events have been associated with increases in the price before (and after) the mining reward is cut in half.

2020 Bitcoin fractal hints at more gains ahead

Bitcoin’s current price action also closely resembles a historical fractal before its price rally toward $69,000 in November 2021, according to market analyst Jelle.
Bitcoin price consolidation comparison between 2024 and 2020. Source: TradingView/Jelle
These similar drawdowns around all-time high prices suggest that the next leg up might be just around the corner, like during the last bull cycle, albeit with some differences.
“Bitcoin is acting similar to 2020’s all-time high breakout,” Jelle argues on X, adding:

“A failed breakout with sharp correction, then some consolidation, and a successful breakout higher.”

Should history repeat with a successful breakout higher, BTC price will be targeting prices north of $75,000.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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EZRA REGUERRA
2 HOURS AGO

Metaverses could be a hub for distributing copyrighted work illegally — UK researchers

Researchers concluded that it is necessary to formulate approaches for addressing the enforcement and governance of IP issues in the metaverse.
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2:49

NEWS
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Researchers in the United Kingdom have studied the viability of current intellectual property (IP) laws and their application to new technologies like the metaverse. In the study, the researchers identified the shortcomings of existing laws and presented their recommendations.
On March 7, the U.K. government published an externally commissioned research report titled “IP and Metaverse.” The report dove into the existing literature on IP laws and how they can apply to the metaverse. Within the study, the researchers concluded that there are metaverse-specific IP issues, such as IP governance in an interoperable environment and regulating technologies like the blockchain and artificial intelligence (AI) within virtual worlds.
According to the report, many legal challenges come with interoperability, including the unauthorized dissemination of copyrighted work. The researchers highlighted that the lack of interoperability has been important in preventing people from illegally distributing copyrighted material. With interoperability being a key feature in a metaverse, the researchers believe this could pose a challenge in governing the use and circulation of copyrighted work.
Meanwhile, blockchain’s inherent characteristics, such as immutability or being “tamper-proof,” also pose a challenge to enforcing IP laws. The researchers wrote:

“Blockchain’s inherent resistance to change or correction undermines the ability to flexibly manage or update IP rights. This is an issue which becomes especially worrisome in the context of ownership disputes, as well as for navigating the termination of agreements and rights if licensors or rightholders seek to leave the Metaverse.”

However, AI use in the potential metaverse governance of IP also poses some anticipated challenges. The researchers argued that algorithmic management of infringements is “extremely vulnerable to misuse” because of the absence of human oversight to guarantee the legitimacy of enforcement.
Related: Majority of social media posts about metaverse show positive sentiment
Apart from this, AI-generated content also brings up another challenge for IP enforcement in the metaverse. According to the study, reliance on AI tools has the potential to invalidate claims of inventorship in content. The research highlighted examples and cases that showed that “only works partially assisted by AI” are able to be protected by IP laws.
Because of the anticipated issues in IP governance within the metaverse, the researchers concluded that there’s a need for clarity on a “plethora of key issues.” This includes legal issues on copyrights, trademarks, patents, designs, user-generated content, virtual property and nonfungible tokens (NFTs) within the metaverse. Because of this, the researchers believed that it’s necessary to formulate IP approaches for addressing governance and enforcement issues for a metaverse.
Magazine: Doctor Who materializes in Web3: Tony Pearce’s journey in time and space
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