Bitcoin (BTC), the largest cryptocurrency in the market, has experienced price volatility amid its struggle to consolidate above the crucial $70,000 resistance line. Recent reports of the collapsed Mt.Gox exchange processing payouts to its creditors have added to the cautious sentiment.
However, wealth management firm Bernstein remains bullish, predicting significant growth in the Bitcoin ETF market and projecting higher price targets for BTC.
In addition, The Birb Nest’s technical analysis reinforces market optimism, highlighting key support levels and indicating positive sentiment.
Long-Term Bullish Outlook For Bitcoin
Despite its recent inability to breach the $70,000 resistance level, Bitcoin remains well-positioned to surpass its all-time high of $73,700 reached on March 14. Wealth management firm Bernstein predicts substantial growth in the Bitcoin ETF market, estimating it to reach a remarkable $450 billion.
The report also suggests that over $100 billion will flow into crypto ETFs within two years. Notably, these inflows into the ETF market are expected to be a significant price catalyst for BTC. The firm predicts a target price of $90,000 for Bitcoin by the end of this year and a projected cycle high of $150,000 in 2025.
On the other hand, The Birb Nest, a trading firm, conducted a comprehensive technical analysis of the Bitcoin market and highlighted its share of bullish indicators for the Bitcoin price in the long run.
Bullish Indicators Reinforce Market Optimism
The analysis conducted by The Birb Nest shows that the 50-week and 200-week simple moving averages (SMAs) are at $43,950 and $35,358, respectively, reinforcing optimism in the market. In addition, the 7-week SPX correlation coefficient is currently at 0.36, which is a bullish sign for BTC.
The 200-day Bitcoin Production Cost (BPRO) trend support is $62,580, while the 200-day SMA support is $53,516. The Relative Strength Index (RSI) is at 59, indicating increased buying interest, although the 50-day Momentum is stalled at 49.
The Fear & Greed Index stands at 74, indicating “greed” and strong market optimism. However, according to the firm, caution is advised to avoid potential overextensions.
However, The Birb Nest notes that the Net Unrealized Profit and Loss (NUPL) indicator stands at 0.57, suggesting that a significant portion of the market is currently profitable, which could lead to increased selling pressure as investors capitalize on profits.
Currently, BTC is trading at $67,900, down 3% from Monday’s price and over 3% in the past seven days, showing the cryptocurrency’s struggle to break above higher resistance levels, which are located at $69,500 and $70,000 on the BTC/USD daily chart.
Conversely, bulls must hold the next support levels for BTC at $67,000, $66,500, and $63,800 to avoid a potential loss of the cryptocurrency’s key $60,000 milestone.
Featured image from Shutterstock, chart from TradingView.com