Bitcoin is trading at $94,225, believed to be 40% undervalued. Institutional interest rises with significant outflows indicating long-term accumulation. A $3 billion surge in ETF investments is bolstering bullish sentiment, with technical indicators suggesting potential for Bitcoin to break above $100,000 if momentum continues. Careful monitoring of price levels is recommended.
Bitcoin is currently making waves, trading at $94,225, which some analysts claim is about 40% undervalued. This indicates a potential buying opportunity. Charles Edwards from Capriole Investments suggests that the intrinsic value, based on data from the April 2024 halving, could allow Bitcoin’s price to soar to around $130,000, making today’s prices particularly attractive for buyers.
In the past weeks, we’re seeing institutional interest surge, with major withdrawals reported. Coinbase alone had a massive outflow of 8,756 BTC, valued at approximately $830 million, on April 24. Additionally, Binance saw its third-largest withdrawal ever with 27,750 BTC. This accumulation trend hints at a significant long-term bullish sentiment amongst institutions.
It’s important to note, though, that heavy outflows don’t always equate to immediate price surges. Remember the sharp decline following the China ban in 2021? Analysts remain cautious even as optimism grows, particularly in the wake of ETFs driving a $3 billion buying spree, as highlighted by Bloomberg’s Eric Balchunas, who stated that the recent institutional ETF investments are a strong indicator of the direction Bitcoin may take in May.
Several factors are driving this positive outlook. The combination of increased ETF inflows, ongoing exchange withdrawals, and supply constraints due to Bitcoin halving are pivotal. Institutions capitalise on the market’s liquidity increases, creating a healthier price floor while also easing miner selling pressures.
From a technical standpoint, Bitcoin prices bounced back off a crucial support level at $93,920. Traders are eyeing the next resistance point at around $94,930, with a potential breakthrough here targeting $95,830. However, if it fails to break this threshold, we might witness a drop back down to levels like $93,070.
Currently, indicators like MACD and RSI suggest there’s room for movement up—assuming buying volume picks up. There’s potential for Bitcoin to rise 7-10% based on historical trends, and crossing the $100,000 mark is looking increasingly possible.
Stay updated on economic events through FX Leaders’ calendar and consider exploring various Forex trading strategies for better trading outcomes.
