Is Bitcoin repeating its 2020 breakout? Here’s why $92.5K might be the next target

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Bitcoin (BTC) price looks ready to rally toward or above $90,000 in the coming weeks due to a mix of supportive technical, on-chain, and fundamental indicators.

BTC price bull pennant taking shape

BTC’s price entered a phase of consolidation, moving sideways within a triangular formation resembling a bull pennant, after achieving a new all-time high of $69,210.

BTC/USD daily price chart. Source: TradingView

Notably, traditional analysts see bull pennants as bullish continuation patterns that could increase prices as much as the previous uptrend’s height. This breakout typically accompanies an increase in trading volume.

Bitcoin’s chances of a breakout are currently considerable as price consolidates, particularly after new all-time highs this week, and other reasons discussed below. Thus, the next target could be around $92,500 in the coming weeks, up 35% from the current levels.

Increasing Bitcoin ETF inflows

Bitcoin’s price uptrend in recent weeks has coincided with the increasing capital inflows into the U.S.-based exchange-traded funds (ETF). Notably, these ETFs hold over $53 billion in their reserves as of March 7, compared to $27.95 billion at their launch in January.

U.S. Bitcoin ETF balance. Source: Glassnode

Higher inflows into an ETF suggest that more investors are buying shares of the ETF, which, in turn, increases demand for the underlying assets. This is because the fund manager may need to purchase additional assets to ensure the ETF accurately reflects the index composition or sector it tracks.

“It appears that the Bitcoin Spot ETF approval launched an accumulation that, if sustained, puts BTC at $100K by October 2024,” market analyst Timothy Peterson commented on X.

Related: Is Tesla buying Bitcoin again? BTC wallet data sparks curiosity

Moreover, the increasing ETF inflows come weeks ahead of the Bitcoin halving. Historically, halving events have been associated with increases in the price before (and after) the mining reward is cut in half.  

2020 Bitcoin fractal hints at more gains ahead

Bitcoin’s current price action also closely resembles a historical fractal before its price rally toward $69,000 in November 2021, according to market analyst Jelle.

Bitcoin price consolidation comparison between 2024 and 2020. Source: TradingView/Jelle 

These similar drawdowns around all-time high prices suggest that the next leg up might be just around the corner like during the last bull cycle, albeit with some differences. 

“Bitcoin is acting similar to 2020’s all-time high breakout,” Jelle argues on X, adding:

“A failed breakout with sharp correction, then some consolidation, and a successful breakout higher.”

Should history repeat with a successful breakout higher, BTC price will be targeting prices north of $75,000. 

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.