The price of Bitcoin (BTC) recently fell by 7.8%, dropping to $60,000. However, as the crypto king recovers from this drawdown, support from many investor groups could push the price higher.
Institutional investors in particular are playing a key role in driving Bitcoin’s upward momentum, and their influence could push BTC towards the $70,000 level.
Robust demand for Bitcoin Notes
Institutional investors are important to Bitcoin’s potential recovery and future growth. Bitcoin exchange-traded funds (ETFs) currently hold $58 billion worth of BTC, according to data from Glassnode. This amount represents approximately 4.6% of Bitcoin’s circulating supply, indicating strong demand for regulated exposure to the cryptocurrency.
Institutional demand suggests that large investors view Bitcoin as a viable and valuable asset. These investors will continue to accumulate BTC through ETFs and other regulated vehicles, thus contributing to the long-term growth and stability of the coin. Their influence could be key to pushing Bitcoin prices towards $70,000, especially if demand remains stable.
Read more: What happened during the last Bitcoin halving? Predictions for 2024
Bitcoin US Spot ETF Balance. Source: Glassnode
Bitcoin’s overall macro momentum also looks favorable for potential price increases. Net realized gains and losses, which track investor sentiment and behavior, have fallen recently, indicating that profit margins are slowing. This change suggests that selling pressure is decreasing, giving Bitcoin the breathing room it needs to recover.
Bitcoin price could benefit from a more balanced market as selling sentiment weakens. This reduction in profit-taking makes the price environment more stable and increases the likelihood of a sustained recovery. Bitcoin could be on an upward trajectory as institutional demand remains strong and selling pressure eases.
Bitcoin Net Realized Gain/Loss. Source: Glassnode
BTC Price Prediction: Hopes Rising
Bitcoin is currently trading at $62,353, just above the key support level at $61,868. Although this is a positive sign, BTC still faces a significant barrier to reaching $70,000 at $65,292. Breaking through this resistance is essential for Bitcoin’s price movement to take the next step.
The above factors suggest the potential for price increases, but this will require steady growth supported by continued institutional demand. If institutional investors maintain interest in BTC, Bitcoin could break through the $65,292 barrier and approach $70,000.
Read more: The history of the Bitcoin halving: Everything you need to know
Bitcoin price analysis. Source: TradingView
However, if institutional demand weakens or large investors exit, Bitcoin could struggle to break above $65,292. In such a scenario, BTC could test the $61,868 support level, invalidating the bullish outlook and potentially delaying further gains.
Disclaimer
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