Bitcoin Bullish Pattern Targets $320,000 as Institutional Ownership Surges

Bitcoin is currently experiencing a significant bullish pattern on its weekly charts, with analysts predicting a potential rise to $320,000. This pattern, known as a cup and handle, has been forming since the end of 2021 and is considered one of the strongest bullish technical patterns in the history of the crypto market. The breakout from this pattern has already begun, with the price consolidating above the key level of $106,000 and targeting a breakout over $110,000.

The handle phase of the pattern, which consolidated just below $70,000, appears to have settled upwards. This well-formed structure demonstrates the persuasive power of long-term holders, as Bitcoin has revisited important historical resistances and is gaining traction towards the next leg up. However, the short-term market structure faces a decision point, as Bitcoin has been struggling against an important structural level of about $106,000. A strong higher closing above this threshold is necessary for Bitcoin to confirm the breakout and avoid a short-term downside.

Recent price rejections around the $110,000 area have resulted in smaller dips compared to previous pullbacks, indicating increasingly higher lows and diminishing overhead resistance. An upside break above the $110,000 mark would strengthen the bullish trend and potentially speed up the movement toward the price targets in the six-figure range. Traders are reacting to this volatility by taking long positions in the market, with most participants in the Bitcoin market following recent declines in price. Prices have stabilized, and shorts are being seen at the rise of bearish sentiment.

Macro investor Raoul Pal has stressed that Bitcoin is in a long-term trend with global liquidity flows, with the price movement mostly driven by the global M2 supply. This makes the short-term narrative less relevant and emphasizes the long-term bullish trend. The consolidation of Bitcoin and the confirmation of bullish technical developments on various time frames point to a solid argument that a significant rally could be on the horizon. However, a breakout above $110,000 remains the imminent challenge ahead of bigger price targets.

Corporate ownership of Bitcoin is also on the rise, with the largest 100 corporate owners now controlling more than 818,000 BTC. This increase in institutional interest emphasizes the growing confidence in Bitcoin as a store of value. MicroStrategy is the largest non-corporate holder, with 582,000 BTC, followed by Marathon Digital and TwentyOne with 49,179 and 37,230 BTC, respectively. The formation of Bitcoin treasuries by these companies indicates a growing trend of diversification in their balance sheets, further validating the bullish trend for Bitcoin.