Bitcoin's (BTC) price has recently shown signs of recovery following a sharp decline at the beginning of October. After dipping below key support levels, BTC has rebounded, giving hope to investors that a significant rally could be on the horizon.
For Bitcoin to experience a 20% increase, it must flip a critical resistance level into support. The upcoming days will be crucial in determining whether the cryptocurrency can break through this barrier and sustain the momentum necessary for a potential surge.
Institutional interest in Bitcoin has surged, marking a significant shift in market sentiment. Recently, spot Bitcoin ETFs saw the largest inflows, with $235 million entering the market. This influx suggests that both institutional and retail investors are viewing Bitcoin as a valuable asset.
Additionally, long-term holders (LTHs) continue to exhibit strong conviction in Bitcoin, adding to its overall strength. The Hodler Net Position Change indicator has shown positive figures since mid-August, indicating that LTHs have been in accumulation mode. This trend suggests that these key market participants believe in Bitcoin's potential for further price appreciation.
Currently at $62,273, Bitcoin has already broken out of a double-bottom pattern formed in September. However, the price is now trading below the neckline of this pattern, needing more momentum to realize the predicted 20% rally. The target price remains $75,979, which would surpass Bitcoin’s previous all-time high of $73,787.
If Bitcoin can break the $63,068 resistance and flip $65,000 into support, it could trigger the next leg up, reinforcing the bullish outlook. However, failing to breach $63,068 may see the price drop to $59,666, invalidating the double-bottom pattern and potentially leading to a deeper correction.
