news 
Bitcoin Price Analysis: $120K Rally or $78K Drop – What’s Next?
The entrance of the Bitcoin price above $100k earlier this month was regarded as one of the most critical bullish milestones during the 2024/2025 bull market. However, the accelerated crypto cash rotation to large and mid-cap altcoins in preparation for a parabolic altcoin season has triggered concerns about the short-term bearish outlook for Bitcoin.
Despite the short-term bearish forecast for the world’s largest cryptocurrency by market capitalization, institutional investors – led by BlackRock’s IBIT, and MicroStrategy Inc. (NASDAQ: MSTR) – have continued to aggressively accumulate more coins. In fact, according to Coinglass’ on-chain data analysis, the supply of Bitcoin on centralized exchanges has dropped to a multi-year low of about 2.24 million.
The US spot Bitcoin ETF issuers have also recorded a cumulative total net inflow of approximately $35.6 billion, thus currently holding total net assets of around $106.6 billion. However, the decline in Bitcoin’s Futures Open Interest (OI) market by over $7 billion in the past few weeks to hover at about $59 billion signals growing fear of a potential midterm selloff.
Given this data, it is essential to reassess the previous predictions that suggested a Bitcoin price surge to $120K or even more. While such an outcome cannot be entirely ruled out, the prevailing sentiment suggests that the cryptocurrency might instead experience a significant drop to as low as $78K in the near future.
As Bitcoin continues to navigate this uncertain market landscape, investors and traders should be cautious of both the risks associated with this potential midterm selloff and the opportunities that may arise from it.
Source: coinpedia.org
