Bitcoin (BTC) Price Prediction: BTC/USD Could Rally to $112,000 and $113,000

Bitcoin is at the moment trading near a critical resistance level that could potentially turn into support in the near future.

Bitcoin price is at the moment trading near a critical resistance level that could potentially turn into support in the near future. This is a significant stage in the market cycle, and I believe that Bitcoin could be on the cusp of a rally. Over the weekend, BTC is also creating a new CME Gap, which, as history has shown, closes shortly after it forms, creating further optimism about the cryptocurrency.

I have pointed out a symmetrical triangle pattern on the charts of Bitcoin, which according to me is a strong precursor of price action. If this pattern turns out bullish, the price target could be $112,000 and $113,000. This would be a positive break out and may be indicative of the beginning of a new bull market for BTC.

The movement of the price in the last few days reflects the past trend especially in the bull market of 2015-2018. First, the price of Bitcoin penetrated the earlier high and now it has also penetrated a downward trendline that has been operative during the consolidation phase. These price actions indicate that BTC is changing its market behavior and may begin a new upward trend like previous cycles.

Bitcoin is trading at just around $104,300 over the weekend, which creates another CME Gap. In the past, Bitcoin has usually filled these gaps 98% of the time by either declining or trading sideways within the gap price range. This implies that BTC shall probably trade within this range for the next few days before a hike to close the gap.

For the 12-hour chart, the BTC has formed a compression pattern that usually happens before a big price breakout. If this compression fails, the price may jump up sharply. Many traders are now paying attention to the patterns to see when the volatility will kick in, which could be the next big move for BTC.

A positive for BTC is the fact that professional investors have outperformed the retail ones in terms of trading volume. The market tops are usually formed when the retail investors go into the buying frenzy, but that is not the situation here. Contrary to this, the growth of BTC price is backed by institutions and not by retail investment which is deemed risky. This change from the retail participation implies that Bitcoin has not yet reached its maximum.

It also has strong institutional backing especially through the increasing spot Bitcoin ETF. New money has poured into the ETF at a rate of more than $517.7 million for the ninth day in a row. This institutional buying is a major force driving BTC’s price and may well take the market even higher.

Perhaps the next driver of BTC price action could be the A Strategic Bitcoin Reserve. If approved, this reserve could lead to another wave of buying, which will increase the prices. Also, Ethereum is looking good, and with the possibility of the altcoin season, Bitcoin’s performance may just be the start of a more significant market uptrend.

The subsequent couple of weeks will likely be the most crucial ones for BTC as well as the entire crypto sphere. In the event that the bullish trend is to be sustained, then BTC could be on its way to recording new highs. As BTC enters a new phase of its lifecycle, institutional backing, solid technicals, and no FOMO from retail will ensure the asset’s brighter future.