Bitcoin bullish scenario targets $110,000 but needs to stay above key level for confirmation

As Bitcoin breaks the $71,000 threshold, analyst Egrag Crypto is eyeing a bull run for its rise to over $100,000.

Over the past 24 hours, Bitcoin has bullishly broken through key resistance levels, reaching a significant milestone above $71,000. The rise represents a notable recovery as it has not reached this level since June. The ongoing momentum has fueled speculation of further gains, driven by technical patterns and growing institutional demand.

Crucial Levels Bitcoin Must Maintain
Egrag Crypto X analyst highlighted Bitcoin’s breakout of a falling broadening wedge chart pattern. This bullish setup was confirmed by Bitcoin retesting and bouncing back above the upper boundary of the wedge pattern.

According to Egrag’s analysis, Bitcoin maintaining prices above $67,100 is crucial to sustaining this bull trend. His analysis projects Bitcoin’s target range to be between $102,000 and $110,000, based on the height of the wedge pattern and broader market dynamics.

Meanwhile, veteran analyst Peter Brandt made a similar point about Bitcoin’s upward trend. He is focusing on a triangle breakout to justify a possible rise above $94,000, $160,000, and $230,000. Brandt’s analysis identified an inverted expanding triangle on a semi-log scale, which recently flipped from a bearish to a bullish outlook.

Bitcoin is now trading above the critical resistance of $69,985 and the breakout suggests further bullish momentum. Holding support above the $70,000 level could set the stage for additional profit taking, positioning $94,000 as the next potential target.

Institutional demand outstrips retail demand
Amid these speculations, institutional interest in Bitcoin continues to grow, with significant inflows observed into custodial wallets. CryptoQuant CEO Ki Young Ju recently noted that 278,000 Bitcoins have flowed into U.S. spot ETFs over the past year, driven primarily by retail demand.

In contrast, 670,000 Bitcoin flowed into whale wallets, which are characterized as holding more than 1,000 Bitcoins. Ju noted that institutional demand for custodial wallets is twice as high as retail demand, while whale wallets are a superset of custodial wallets. His analysis further showed that most ETF custodial wallets hold less than 1,000 BTC, while non-ETF custodial wallets hold larger balances.

This suggests that large entities may be positioning themselves for a potential long-term bullish run, as demand often precedes a surge in prices.

Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may contain the personal opinions of the author and do not reflect the views of The Crypto Basic. Readers are encouraged to perform thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.