Bitcoin Price Shows Signs of Recovery; Institutional Interest Fuels Potential 20% Rally

Bitcoin's (BTC) price has recently shown signs of recovery. After a sharp drop at the start of October, it dipped below key support levels. Now, BTC has bounced back, giving investors hope for a significant rally ahead.

For Bitcoin to see a 20% increase, it needs to turn a critical resistance level into support. The next few days will be crucial. They will determine if the cryptocurrency can break through this barrier and maintain the momentum needed for a potential surge.

Institutional interest in Bitcoin is back, marking a notable shift in market sentiment. On Monday, spot Bitcoin ETFs saw inflows of $235 million. This followed several days of outflows. It suggests that both institutional and retail investors are once again viewing Bitcoin as a valuable asset, contributing to a bullish outlook.

This rise in interest is a positive sign for Bitcoin’s price trajectory. When institutions start accumulating, it often indicates confidence in the asset’s future. The increased inflows into spot BTC ETFs reflect broader market interest, supporting the possibility of Bitcoin achieving a 20% rally soon.

Additionally, long-term holders (LTHs) continue to show strong conviction in Bitcoin. The Hodler Net Position Change indicator has shown positive figures since mid-August. This indicates that LTHs have been in accumulation mode. Recent data shows that they are increasing their positions again, which adds to Bitcoin’s overall strength.

The ongoing accumulation by long-term holders suggests that these key market players believe in Bitcoin’s potential for further price appreciation. As LTHs hold onto their assets, the circulating supply decreases. This creates a more favorable environment for a price surge. This macro momentum could help Bitcoin reach that anticipated 20% rally.

Currently, Bitcoin is priced at $62,273. It has already broken out of a double-bottom pattern formed in September. However, the price is now trading below the neckline of this pattern. It hasn’t gained enough momentum yet to realize the predicted 20% rally. The target price remains at $75,979, which would surpass Bitcoin’s previous all-time high of $73,787.

At this point, the factors driving institutional interest and long-term holder accumulation suggest that Bitcoin might make another attempt at a rally. This will be confirmed if BTC breaks the $63,068 resistance and flips $65,000 into support. Such a move could trigger the next leg up, reinforcing the bullish thesis.

However, if Bitcoin fails to breach $63,068, the price may drop to $59,666. Losing this support would invalidate the double-bottom pattern and undermine the bullish outlook. This could lead to a deeper correction.