Bitcoin (BTC) price rallied to $65,000 on July 16 after the traders’ fear over the German government selling BTC cooled off. However, there are fears that Bitcoin price may drop to $58,000 as Mt. Gox began moving $6 billion worth of coins from its cold wallet to various addresses.
Despite this, market analysts believe Bitcoin’s “post-halving” growth trajectory is still in play.
BTC/USD daily chart. Source: TradingView
Let’s look at some of the reasons why analysts think that the Bitcoin bull market is still underway.
The Coinbase premium flips positive
Bitcoin’s definitive breakout above $65,000 may come sooner than expected as spot buying on Coinbase Pro has been increasing.
According to FalconX Research, the Coinbase Premium Index, which measures the gap between BTC price on Coinbase Pro and Binance, has flipped positive and risen to 0.1%, “levels last seen in mid-May.”
This means, buying at Coinbase appears to be strengthening compared with other exchanges like Binance.
A positive reading on the Coinbase Premium Index could be a precursor to long-term support. Conversely, a negative premium indicates strong spot selling at Coinbase.
Coinbase Bitcoin Premium Index. Source: FalconX Research
FalconX Research head of research David Lawant believes that Bitcoin price is gearing up for a “massive rally” similar to that witnessed between October 2023 and March this year when BTC rallied approximately 170% from $26,000 to set a new all-time high at $73,835.
“Something tells me the next 6-12 months will be splendid—and probably volatile.”
Increasing capital flows into Bitcoin investment products
Another factor that is making traders believe that BTC’s bull run is not over is the continued inflows into Bitcoin investment products.
“Cumulative Net ETF Flows reached a new ATH last week,” declared author and independent analyst Timothy Peterson in a July 15 post on the X social media platform.
Peterson was referring to the seven-day streak of positive flows into US spot Bitcoin ETFs, which brought the cumulative inflows to a record high of $16.11 billion, according to data from Farside Investors….
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