Is Bitcoin Bullish Despite Pullback Or Will It Plunge By Over 30%: Analysts Predict

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Bullish Trend For Bitcoin

An analyst has explained how the data of an on-chain indicator could indicate that a bullish trend is still on for Bitcoin despite the latest pullback.

In a new post on X, CryptoQuant author Axel Adler Jr has talked about the latest trend in the Bitcoin Coinbase Flow Pulse. The “Coinbase Flow Pulse” refers to an indicator that keeps track of the total amount of BTC flowing into Coinbase from other centralized exchanges.

The Bitcoin inflow to CoinBase from all exchanges remains in the green zone, indicating strong demand for coins in the US market.

Despite the local pullback, the bullish trend persists. pic.twitter.com/T0otiBIQ2m

— Axel Adler Jr (@AxelAdlerJr) October 4, 2024

He shared a chart that shows the trend in the 30-day and 90-day simple moving averages of this indicator over the last few years. Notably, the Bitcoin Coinbase Flow Pulse has seen both of these SMAs moving up since early 2023, suggesting that there has been a long-term trend of increasing inflows to Coinbase from other platforms.

At present, the 30-day is still above the 90-day, which means the inflows are continuing to accelerate. From the perspective of this indicator, whenever these two lines are arranged in this manner, Bitcoin can be assumed to be in a bull market.

Analyst Cowen Bearish On Bitcoin

However, on the other side, Analyst Benjamin Cowen is leaning bearish on Bitcoin amidst a single-digit correction over the past week.

Cowen in a new YouTube video shared that if Bitcoin fails to overcome the upper trend line formed by the series of lower highs on the weekly time frame since March, it might plunge by around 32% from the current level to the lower trend line formed by a series of lower lows generated over the same period on the same time frame.

“If Bitcoin is rejected up here [upper trendline] again and it comes down again then you have to look at this trend line down here [lower trendline] again and if you look at the bottom part of this trend line let’s say by December….it would put the price of Bitcoin right around $42,000.”

He stated that the reason why $42,000 is an interesting number is because if you go back and look at the 100-week moving average, you can kind of see that by the November-December time frame, that’s basically where the 100-week moving average is going to be.”

According to Cowen, Bitcoin will reflect price action from previous cycles if it fails to break above the upper trend line.

He emphasized that “If Bitcoin cannot break the lower high structure, if it can’t break through the lower high structure and the bulls just get tired once again then I think your eyes have to be drawn to the 100-week moving average which is where Bitcoin fell in Q4 of 2019 and Q1 of 2016.

Will BTC Reach Past $70K?

Bitcoin’s (BTC) price recently experienced a 7.8% decline, dropping to $60,000. However,  support from a significant group of investors could push the price higher. Institutional investors are playing a key role in driving Bitcoin’s upward momentum, and their influence might propel BTC toward the $70,000 mark.

The institutional demand suggests that large-scale investors view Bitcoin as a viable and valuable asset.  Their influence could push Bitcoin’s price toward $70,000 if demand remains consistent. However, if institutional demand weakens or large investors pull back, then this could invalidate the bullish outlook and delay further gains.