The latest data from an on-chain indicator suggests that Bitcoin is still in a bullish trend despite a recent pullback. According to CryptoQuant author Axel Adler Jr, the Bitcoin Coinbase Flow Pulse indicator indicates strong demand for BTC in the US market. The indicator tracks the total amount of BTC flowing into Coinbase from other centralized exchanges, and both the 30-day and 90-day simple moving averages have been on an upward trend since early 2023. The current positioning of these SMAs suggests that Bitcoin is in a bull market.
On the other hand, analyst Benjamin Cowen has a bearish outlook on Bitcoin following a single-digit correction over the past week. Cowen shared in a recent YouTube video that if Bitcoin fails to break above the upper trend line formed by lower highs on the weekly time frame since March, it could see a 32% plunge to around $42,000. He pointed out that the 100-week moving average could play a significant role in determining Bitcoin’s price action in the coming months.
Despite the recent decline in Bitcoin’s price to $60,000, there is optimism that institutional investors could push the price higher towards $70,000. Institutional demand for Bitcoin has been a driving force behind its upward momentum, and consistent demand from these investors could propel BTC to new highs. However, any weakening in institutional demand or a pullback from large investors could dampen the bullish outlook and delay further gains.
In conclusion, the conflicting views from analysts and the influence of institutional investors will likely continue to shape Bitcoin’s price trajectory in the coming weeks. Traders and investors should monitor key indicators and market trends to make informed decisions about their Bitcoin holdings.