Bitcoin Price Targeted at $106K Amidst Rising ETF Inflows and Interest

Bitcoin is targeting $106,000 as price momentum builds from rising ETF inflows and increased active addresses, with significant challenges at the $96,000 resistance level. Daily active Bitcoin addresses have exceeded 800,000, indicating a growing market demand. Institutional interest via ETFs adds a new layer of support, but volatility remains as prices hover just under $95,000.

Bitcoin has been making headlines lately, with a price target set at $106,000 driven by rising ETF inflows and strong on-chain metrics. A report from Matrixport highlights that breaking through the crucial $96,000 resistance level could significantly boost Bitcoin’s trajectory. Currently, Bitcoin has been holding steady above the $95,000 mark, showing an impressive 30-day rally of around 14%. This surge is largely attributed to renewed investor enthusiasm and market participation.

As noted by Matrixport, if Bitcoin can navigate past that key $96,000 resistance, there’s potential for the price to soar. It’s a technical threshold that follows Bitcoin’s bounce back from the earlier downtrend that touched near $85,712. However, maintaining this bullish movement will depend on a variety of factors, including the strength of the US equities market and an increase in stablecoin inflows. Matrixport believes that if these conditions remain favourable, Bitcoin could reach that lofty $106,000 target quite soon.

In addition to price trends, active participation has spiked in the Bitcoin network. On-chain analysis from IntoTheBlock revealed that daily active BTC addresses have surged beyond 800,000. This number, while not as high as previous peaks, suggests a resurgence in wallet activity and engagement. Rising active addresses usually correlate with increased transaction volumes, which can indicate mounting market demand and overall activity in Bitcoin.

Interestingly, this uptick in user engagement comes amidst a broader positive sentiment within the cryptocurrency space. Also, long-term holdings by investors and institutional investors have seen an uptick, which could help stabilise Bitcoin prices at elevated levels.

Institutional interest, particularly through ETFs, has given the Bitcoin market a new structural benefit. BlackRock’s spot Bitcoin ETF has been noted for its steady daily inflows, allowing more investors easier access to the market. Matrixport’s findings highlight how this rising ETF activity supports Bitcoin’s upward trajectory, contributing to a more favourable market climate. The influx of capital is valuable because it avoids the typical obstacles associated with direct crypto holdings, suggesting even more growth potential for Bitcoin.

Despite this positive outlook, Bitcoin traded slightly below the $95,000 in mid-April after recent drops near $93,498. Still, the cryptocurrency’s bullish performance this month, with a more than 15% climb in the past 30 days, remains impressive amidst fluctuations in broader crypto market conditions. Although trading remains volatile, analysts see support at the $95,000 level holding up for now.

Additionally, recent insights from Glassnode observed that since the start of the year, 99 new whale entities—those holding over 1,000 BTC—have joined the network. This brings the total to 1,750, indicating a robust trend of accumulation. The strengthened confidence is underscored by a shift in sentiment from fear to a more optimistic greed as Bitcoin approaches that $96,000 resistance.

However, a disclaimer is necessary; the opinions expressed in this article are strictly for informational purposes and do not constitute financial advice. As always, trading or investing in cryptocurrencies carries inherent risks.