Bitcoin Price Could Surge to $112K, Driven by ETF Inflows

Despite experiencing several downturns in recent months, expectations for the price of Bitcoin (BTC) remain exceptionally optimistic following a surge in exchange-traded fund (ETF) inflows. This forecast is primarily led by crypto analyst Micky Bull, who has released another positive prediction, suggesting that the BTC price could exceed the sought-after $100,000 threshold.

Positive ETF Inflows to Catalyze Bitcoin Price Rise

On September 12, 2024, U.S. spot Bitcoin ETFs reported positive inflows of $39.02 million, indicating a recovery from earlier low volume periods. In contrast, Ethereum ETFs suffered a net outflow of $20.14 million, with some ETFs showing no movement at all.

Typically, positive inflows occur when the cost basis for ETF investors (the original acquisition value of BTC for tax purposes) surpasses Bitcoin’s current price. As noted by CryptoQuant CEO Ki Young Ju, the cost basis for “New Custodial Wallets/ETFs” stands at $62,000, whereas Bitcoin is trading around $57,000, suggesting that most ETF investors are presently incurring losses.

The combination of rising ETF inflows, institutional accumulation, and historical developments has led analysts to conclude that Bitcoin (BTC) is on the brink of a major price increase.

Miky Bull, for instance, has adjusted his Bitcoin price target to $112,000, expressing his belief in the cryptocurrency’s ability to outstrip prior highs. In his commentary on X, he suggests BTC may be poised for a parabolic rally that could reach a cycle peak in the coming months, basing his analysis solely on historical trends following previous Bitcoin halvings.

He remarked: “History has proven its consistency. In Q4 of both 2016 and 2020, following halvings, we saw the onset of a parabolic rally leading to a cycle peak. Bitcoin is targeting a first milestone of $112,000 this year.” Thus, the recent uptick in ETF inflows might serve as a pivotal catalyst, driving greater investment and adoption.

BTC to Reach $65,000 as a Preliminary Target

The latest price movements of Bitcoin have created an interesting chart pattern that, if realized, could indicate a bullish reversal and push Bitcoin towards $65,000. An inverted head and shoulders (H&S) pattern appears to be forming, suggesting a price target of approximately $65,000. However, achieving this will require a breakout above the current consolidation threshold ($62,000), which may activate another sell-side liquidity hunt.

A breakthrough above the H&S neckline, currently positioned at $59,500, could spark a rally to the upper range, possibly reaching $65,000 in a second buy-side liquidity run before pulling back. Nevertheless, a firm breakthrough beyond $65,000 with validated volume may ignite a more substantial advance, potentially exceeding the previous all-time high to hit the $112,000 target predicted by analyst Mikky Bull.