Institutions are buying Bitcoin as it dips under $60,000, strengthening the long-term bullish outlook for BTC’s price.

Independent market analyst Arsen remains confident in Bitcoin’s potential, predicting a significant rebound to $330,000 during the bull cycle. Despite recent market fluctuations, Arsen’s forecast is based on historical patterns and the behavior of institutional investors.

Smart Money accumulates Bitcoin

Arsen points out that smart money — institutional investors, market experts, and other financial professionals — has accumulated BTC during its recent price corrections. This accumulation indicates a strong long-term bullish sentiment for the top cryptocurrency. 

While you're being scared, smart money is doubling down.

That’s because this dip is nothing new.

As you can see, Bitcoin goes to a new all-time-high every 4 years:

2012: Bitcoin goes from $12 to $1000 = ~9,000% increase
2016: Bitcoin goes from $650 to $19K = ~3,000% increase… pic.twitter.com/gxHsEwzLBs

— Arsen | Bitcoin Therapy 📧 (@satoshibaggins) July 10, 2024

“That’s because this dip is nothing new,” the analyst noted, referring to Bitcoin’s previous bull cycles. Historically, BTC experiences bull cycles every four years, each marked by substantial price increases.

In Bitcoin’s first bull cycle in 2012, the price rose by an astounding 9,000% over 800 days. Subsequent cycles in 2016 and 2020 also saw significant gains, with Bitcoin’s price increasing by approximately 3,000% and 1,200%, respectively.

Arsen highlights a pattern where Bitcoin’s returns diminish by about 60% each consecutive cycle. Based on this trend, he predicts a 450% price increase in the current cycle, positioning Bitcoin’s value at around $330,000 per coin.

Market conditions and institutional activity

Despite a sharp correction that has seen Bitcoin’s price drop around 23% from its all-time high of approximately $74,000, the long-term outlook remains positive. As of July 11, Bitcoin was trading at a subdued $57,000. Several factors, including the ongoing Mt. Gox reimbursements to clients and aggressive BTC sell-offs by the German government, have influenced this recent decline.

However, data from CoinShares reveals that institutional investors are taking advantage of the dip to increase their BTC holdings. A weekly report by on-chain analytics platform CryptoQuant supports this observation, noting that large investors, or “whales,” have steadily increased their holdings during the recent price decline.

According to the report, whale holdings are growing at a monthly rate of 6.3%, the fastest pace since April 12. This growth is a strong indicator of rising demand for BTC, reinforcing the bullish outlook for the cryptocurrency.

Source: CryptoQuant

Bitcoin short-term bearish predictions

While Bitcoin’s long-term outlook is bullish, some analysts predict further short-term declines. Markus Thielen, an analyst at 10x Research, suggests that Bitcoin’s price could drop towards $50,000 in the coming weeks due to a double top formation. Double tops are considered bearish reversal patterns, signaling potential declines.

Similarly, Michaël van de Poppe, founder of MN Capital, holds a short-term bearish view. He anticipates that Bitcoin will break below the May 1 low of $56,000 to tap into the demand-side liquidity beneath it, potentially falling further to around $52,800.

Another market analyst, Apsk32, foresees a correction until October, followed by a significant rally. He predicts a 300% increase in Bitcoin’s price into 2026, reinforcing the long-term bullish scenario proposed by Arsen.