The price of BTC has continued to rally strongly, with a 3% increase today. It is now trading above $82,000 as the bullish move continues. In an effort to explain why the price is rising, Crypto Rover made a YouTube video.
The 9-minute video explains that the rally is largely fueled by increased retail demand, even as institutional trading remains relatively subdued.
The analyst believes this shift in market dynamics could signal the start of a new growth phase for Bitcoin, with historical trends and technical indicators suggesting the likelihood of sustained upward movement in the future.
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Post-Election Cycle and Halving Fuel Bitcoin’s $120K Target
The analyst also touches on the historical correlation between Bitcoin price increases and post-U.S. election periods. He connects this trend with the influence of the Bitcoin halving cycle, suggesting that the timing may support a continuation of the rally.
Previous cycles have seen significant price increases following halvings, further bolstering the bullish outlook. Technical indicators, such as the MVRV Z-score, suggest that Bitcoin is currently undervalued, leaving room for potential growth.
Additionally, the formation of a cup-and-handle pattern projects a price target around $120,000. The analyst stated that reaching and surpassing the threshold of $80,000 could move Bitcoin’s climb toward $100,000 and beyond, with a bull flag pattern indicating an upper target of $120,000.
BTC Retail Interest Could Continue to Drive Price Surge
Crypto Rover emphasizes the significance of Bitcoin breaking above the $73,000 resistance level, which previously limited its growth.
This breakthrough could signal a sustained uptrend similar to patterns observed in gold markets. Historically, assets like gold have surged after breaking out of consolidation phases, and Crypto Rover suggests that Bitcoin may follow this trajectory.
Crypto Rover noted that the current surge seems to be primarily retail-driven, with relatively low trading volumes in ETFs.
Despite a general lack of widespread retail interest, consistent new retail inflows indicate a potential for prolonged influence on Bitcoin’s price movements.
This retail-driven dynamic contrasts with past trends where institutional investments dominated.
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Analyst Sees a Possible Price Correction to Fill CME Gap
The analyst points out the creation of a CME gap over the weekend, which reflects a $3,000 disparity above the last CME close. This gap poses a short-term risk, as corrections could bring Bitcoin’s price down to approximately $76,500.
He noted that such price gaps often prompt speculation about a “fill,” where prices may correct to align with previous market closes.
While the recent price action is encouraging for bullish investors, the analyst cautions that gaps frequently resolve with downward adjustments once the markets reopen, raising concerns especially since the recent price increase appears to be driven by retail investors, while institutional inflows remain low
