Following the highly anticipated Bitcoin Conference 2024 in Nashville, Tennessee over the weekend, a notable increase in positive market sentiment drove the price of Bitcoin to a one-month high of $70,000 on Monday.
Analysts are now eyeing the potential for a prolonged supercycle, with market expert Doctor Profit suggesting the recent rally could start a significant uptrend with plenty of room to run.
Bitcoin Price Projections
According to a recent report by Doctor Profit, the current price action is the first phase of this potential supercycle, noting that during the 2021 bull run, he accurately predicted Bitcoin’s drop to around $18,000, followed by the capitulation event triggered by the FTX collapse, where it reached $15,400.
“At this point, I have posted that I will go all in with the 2021 bull market gains back in the market at prices between $16,000 and $18,000,” Doctor Profit stated. “This price floor is historically significant and unlikely to be revisited.”
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The analyst further explained the various phases of the current market cyclehighlighting the “pre-high” phase characterized by resistance at US$ 38,500, which needed to be broken to enter the second pre-high phase.
Doctor Profit believes this phase was driven by significant buying activity from Binance, Changpeng Zhao (CZ), Justin Sun, and Bitfinex whales, as well as the Bitcoin filing. commercial fund exchange (ETF) by BlackRock in June 2023.
The “Golden Bull” phase, as seen in the chart above, followed the approval of the BlackRock Bitcoin ETF and saw the entry of traditional financial players into the crypto market, leaving the $48,000 to $74,000 range as one of the most crucial support levels that will be defended during the upcoming bull market, according to the analyst.
“This golden bull region will mark or be very close to the bottom of Bitcoin for the upcoming bear market,” Doctor Profit explained. “Once again, this region is the entry point for BlackRock investors and they will defend it at all costs during this bull market.”
Considering these levels that could support the price of BTC in the coming months, Doctor Profit’s technical analysis highlights that the initial target for this supercycle is set at the limit of US$ 86 thousand, with projections varying between US$ 110 thousand and US$ 120 thousand in a conservative scenario.
However, Doctor Profit noted that in the most optimistic scenario, the price of Bitcoin could rise between $180,000 and $220,000 if the price rises above $70,000 and consolidates above this milestone.
Investor confidence spikes
Adding to the bullish sentiment, a recent report CoinShares’ latest trading report showed that Bitcoin saw a healthy $519 million in inflows last week, bringing its month-to-date inflows to $3.6 billion and year-to-date inflows to a record $19 billion.
The firm noted that this increase in flows and investor confidence can be attributed to the U.S. government’s potential use of BTC as a strategic reserve asset following Donald Trump’s speech on Saturday, as well as the increased likelihood of a Federal Reserve rate cut in September 2024.
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As reported Via our sister site Bitcoinist, former US President Donald Trump reiterated his plans to create a national stockpile of Bitcoin and transform the cryptocurrency into a strategic reserve asset for the US dollar.
Trump also promised that the US government would retain ownership of all BTC in custody rather than participating in a market sell-off that could ultimately affect price action and potential upward movement.
At the time of writing, the largest cryptocurrency on the market was trading at $68,800, recording price gains of 1.3% and 2.3% over the 24-hour and 7-day periods, respectively.
Featured image of DALL-E, chart from TradingView.com