Coinidol.com: Bitcoin (BTC) is exhibiting renewed strength, surging past the $116,000 mark and showing strong bullish momentum fueled.
This price rally is a direct reflection of a maturing market, where on-chain data and investor behavior are becoming increasingly intertwined with traditional financial metrics.
What drives BTC rally today?
On the institutional front, U.S. spot Bitcoin ETFs are a major catalyst, recording over $290 million in net inflows on September 16 alone. This sustained capital flow from traditional finance is absorbing supply and creating upward price pressure. Moreover, the trend has been continuing for weeks.
Adding to this, on-chain analytics from Glassnode show that over 44,000 BTC have been withdrawn from exchange reserves in September, signaling that large holders are moving their coins to cold storage with a long-term outlook. This reduced liquidity on exchanges could lead to a significant supply squeeze.
From a macroeconomic perspective, investors are anticipating a potential rate cut from the Federal Reserve, a move that is generally seen as bullish for risk assets. The growing divergence between a strong Bitcoin market and a cautious gold market suggests that some investors may be viewing Bitcoin as a “velocity play” for future gains.
What investors expect from Bitcoin?
Analysts believe a decisive break above $118,000 could pave the way for Bitcoin to test new highs in the coming weeks, potentially reaching targets of $150,000 to $200,000. The confluence of tightening supply, strong institutional demand, and supportive macro forecasts paints a very optimistic picture for Bitcoin’s near-term trajectory.
Analytics at Coinidol.com noticed the candlestick body of the uptrend tested the 38.2% Fibonacci retracement on September 5, which suggested that BTC can reach $122,647.80. However, at the time of writing, Bitcoin was trading at $116,289.
Disclaimer. This analysis and forecast are the personal opinions of the author. The data provided is collected by the author and is not sponsored by any company or token developer. This is not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol.com. Readers should do their research before investing in funds.