Bitcoin Price Forecast: BTC Rallies as Institutional Inflows Surge Past $1 Billion for Two Weeks

Bitcoin Price Forecast: BTC Rallies as Institutional Inflows Surge Past $1 Billion for Two Weeks

Disclosure: This article is for educational purposes only and does not constitute investment advice.

Bitcoin Price Today: $68,500

Key Highlights

• US Spot Bitcoin ETFs recorded net inflows of $997.2 million last week, with BlackRock's IBIT funds leading, contributing $1.15 billion in inflows.

• Santiment Data: Major Bitcoin holders (whales) increased their holdings by 1.9%, accumulating from retail traders, indicating potential bullish momentum.

• Challenges: Ongoing US investigations into Tether’s AML compliance and geopolitical tensions in the Middle East create uncertainty.

Institutional Demand Drives Bitcoin’s Recovery

Despite Bitcoin’s dip to $65,260 last week, institutional investors remained optimistic, driving strong demand. Data from Coinglass shows over $997.2 million in net inflows into US spot Bitcoin ETFs, largely driven by BlackRock’s IBIT funds. The fund's inflows mark a second consecutive week above $1 billion, signaling growing institutional interest even amid volatility.

With increased institutional accumulation, Bitcoin managed to recover from its recent lows, trading above $68,000 as of Monday. If this momentum continues, BTC could test its October 21 high of $69,519, potentially setting the stage for a run towards the all-time high of $73,777.

Whale Accumulation Signals Bullish Potential

According to Santiment, the number of wallets holding over 100 BTC rose by 297 wallets (+1.9%) in the past two weeks, while smaller wallets decreased. This trend typically points to whale accumulation, which historically signals bullish market behavior. The shift suggests that larger investors are confident in Bitcoin's long-term potential, scooping up coins from retail traders during periods of price weakness.

Macro Headwinds: Tether Scrutiny and Geopolitical Risks

Recent reports indicate that the US government is investigating Tether for potential AML rule violations, contributing to short-term market uncertainty. Although Tether’s CEO, Paolo Ardoino, has denied the allegations, the news caused temporary sell pressure across crypto markets, with Bitcoin dipping to $65,500 on Friday.

In addition, escalating tensions in the Middle East have contributed to broader market risk. Israel’s retaliatory strikes against Iran, following missile attacks earlier in the month, have led to increased caution among investors. The S&P 500 and Dow Jones both experienced declines of 0.61% and 0.03%, respectively, during this period, influencing a brief sell-off in the crypto markets.

Technical Outlook: Can BTC Break Through $70,000?

Bitcoin found strong support at $66,000, rebounding by nearly 2% over the weekend to reach its current level of $68,500. If this support level holds, BTC could attempt to reclaim the October 21 high of $69,519. A successful break above $70,000 could open the door to retesting the all-time high of $73,777 set in March.

The Relative Strength Index (RSI) on the daily chart stands at 61, above its neutral level of 50, signaling that bullish momentum is gaining traction. If the RSI continues to rise, it could further support Bitcoin’s potential rally above the psychological $70,000 mark.

Conclusion

Bitcoin is showing resilience amid institutional inflows and whale accumulation. While macro factors like the US-Tether investigation and geopolitical tensions present headwinds, the overall outlook remains optimistic, supported by solid inflows and technical indicators.