Bitcoin Poised for 200% Surge as Key Indicators Point to Major Breakout

Bitcoin’s on-chain data is showing an increase in daily active addresses and a slight uptick in flows into US spot Bitcoin ETFs, potentially setting the stage for an upward rally in the near future.

A notable figure in the crypto space, Wise Advice, has drawn attention to a significant development in the Bitcoin market. The weekly Bollinger Band for Bitcoin has reached its second lowest point in six years, signaling a potential 200% surge from its current price level.

The historical pattern highlighted by Wise Advice suggests a substantial price movement. The last time the Bollinger Band was this tight, Bitcoin was valued at $24,000. Following that occurrence, Bitcoin experienced a remarkable surge, skyrocketing by 200% within a span of five months.

Bollinger Bands serve as a widely-used technical analysis tool employed by traders to identify volatility and potential price reversals in the market. A tight Bollinger Band signifies low volatility and often precedes significant price movements, whether upwards or downwards.

With Bitcoin exhibiting this pattern currently, many analysts and traders are speculating about a potential breakout. If history repeats itself, Bitcoin could potentially surge by 200% from its current price level, reaching around $180,000 in the months ahead.

In terms of Bitcoin ETFs, data from Lookonchain reveals that nine Bitcoin spot ETFs added 526 BTC worth $33 million on July 1, marking five consecutive days of net inflows. Notably, BlackRock added 1,366 BTC valued at $85.9 million, bringing its total BTC holdings to 306,979, valued at $19.3 billion.

Conversely, Grayscale, Invesco, and Fidelity witnessed decreases in their BTC holdings. Collectively, the nine Bitcoin spot ETFs now hold $54.3 billion in Bitcoin.

In recent technical analysis, Bitcoin’s price broke above a falling wedge pattern but faced resistance at the $63,956 level. Currently trading below this mark at $62,916, Bitcoin has experienced a slight price decline. If Bitcoin manages to surpass the $63,956 resistance level, it could potentially rise by 5% to test the next weekly resistance at $67,147.