TLDR
- Bitcoin reached a new all-time high of $122,871 before retreating below $120,000
- Analyst Katie Stockton predicts Bitcoin could reach $135,000 before a market correction
- Bitcoin’s market cap has grown to $2.4 trillion, making it the world’s fifth-largest global asset
- Institutional investment remains strong with Strategy adding 4,225 BTC to their holdings
- Technical indicators suggest more room for growth despite some warning signs
Bitcoin has broken out of its multi-week sideways channel to reach unprecedented heights. The world’s largest cryptocurrency hit a new all-time high of $122,871 on Coinbase on Monday before pulling back slightly below the $120,000 mark during early trading on Tuesday.
This price surge has propelled Bitcoin’s market capitalization to an impressive $2.4 trillion. With this growth, Bitcoin has overtaken Amazon to become the world’s fifth-largest global asset.
The recent price action follows almost two months of consolidation that Fairlead Strategies founder Katie Stockton now describes as “ancient history.”
In an interview with CNBC, Stockton shared her bullish outlook based on measured move projections from the recent breakout. She expects the previous uptrend to continue before any corrective phase occurs.
“That puts Bitcoin at around $135,000 as an intermediate-term objective,” Stockton stated.
Other analysts have echoed similar price targets. 10x Research head Markus Thielen told Cointelegraph, “Based on the July 10 breakout signal, which has historically led to an average 20% rally over the following two months, we project Bitcoin could reach $133,000.”
Thielen added, “We expect some near-term consolidation, followed by a push toward $133,000, with our $160,000 year-end target still firmly in sight.”
Institutional Drivers Behind the Rally
The current rally appears to be primarily driven by institutional capital rather than retail investors. Strategy acquired another 4,225 BTC on Monday, bringing their total holdings to 601,550 BTC.
Bitcoin spot ETF inflows recorded $1 billion on back-to-back days between July 10-11. This matches the record set in January 2024 when spot ETFs were newly launched.
“This is an incredibly bullish signal, especially given the environment this is happening in,” said Nic Puckrin, founder of The Coin Bureau. “Most importantly, retail buyers are nowhere to be seen yet. This rally is still driven by institutional capital.”
Puckrin noted that typical signs of retail involvement such as soaring search traffic and rising crypto app rankings remain absent. He suggested retail investors are unlikely to enter the market “until we get to around $150,000 and the FOMO kicks in.”
Technical Indicators Show Mixed Signals
On-chain metrics reveal both promising signals and potential warning signs for Bitcoin’s short-term price action.
The Coinbase Premium Index, which measures the percentage difference in BTC prices on Coinbase versus Binance, has remained positive for the past two months. This indicates strong U.S. investor interest, though the premium is not yet at peak levels seen during previous rallies.
Net long positions on Bitcoin futures on centralized exchanges are approaching the $100 million mark. This suggests buyers may have the power to drive prices higher in the short term.
However, there are some cautionary indicators. The taker buy/sell ratio is skewed heavily toward buyers, with the 7-day moving average at 1.03. Historically, when this metric approaches 1.04, Bitcoin has experienced short-term pullbacks or sideways price action.
Another potential concern is the flow of stablecoins out of exchanges, which could signal decreasing buying power in the market.
Despite these mixed signals, Bitcoin broke above a seven-year trendline that has acted as strong resistance since 2018. This breakthrough is considered a highly bullish development by market watchers.
LVRG Research director Nick Ruck remains optimistic, stating,
“Investors are still looking at $150,000 as the next major price level to reach during this cycle. We remain optimistic that Bitcoin can continue, pending no sudden black swan events.”
Bitcoin’s current price movement has increased its market share among global assets, though it remains small compared to traditional asset classes like gold, equities, real estate, and bonds.
As of the latest data, Bitcoin holds the sixth rank among the largest assets by market capitalization at $2.385 trillion, surpassing Alphabet at $2.2 trillion.
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Source: https://blockonomi.com/bitcoin-btc-price-becomes-worlds-fifth-largest-asset-after-breaking-120000/