Bitcoin is currently consolidating and testing crucial support levels between $112,000 and $117,000, even as exchange-traded fund (ETF) inflows reach record highs.
This consolidation occurs despite a significant surge in assets under management within Bitcoin ETFs, which have ballooned to $162 billion. This substantial figure underlines the escalating confidence and capital commitment from large institutional investors towards the digital asset.
Highlighting the broader optimistic sentiment, John Glover, Chief Investment Officer at Ledn, forecasts potential significant growth for Bitcoin by the end of next year. Glover projects the cryptocurrency could climb to a range between $135,000 and $140,000, attributing this expected rise primarily to robust ongoing capital inflows.
On-chain metrics reveal a recent, slight deceleration in 30-day capital movement into the Bitcoin ecosystem. While this suggests a possible short-term consolidation phase might persist near current levels, analysts interpret it as a positive indicator for sustained long-term price appreciation.
Drawing parallels with historical patterns, analysts note that Bitcoin has frequently tested pivotal support levels during post-halving years before subsequently embarking on substantial upward price trends. This established historical precedent reinforces the current market expectation of an impending bullish cycle.
The confluence of strong institutional ETF demand and historical bull market behavior continues to fuel a constructive outlook for Bitcoin’s trajectory, notwithstanding the ongoing technical consolidation at key support.