- An analyst explains that the recent rally staged by Bitcoin stems from excitement rather than euphoria, however, the potential move to $73k could be the beginning of “escape velocity”.
- He also warns that wallets that have held Bitcoin for less than 155 days could take profit at its peak and trigger a massive sell-off.
Bitcoin (BTC) is still warming up at $69k to make a dramatic return to $73k after embarking on a bullish reversal from below 65k. At press time, Bitcoin was down by 0.3% in the last 24 hours, but up by 5% and 35% in the last seven days and 90 days respectively.
Over the past couple of days, trading activities have taken a considerable nosedive with both diluted market cap and the actual valuation plunging marginally. However, market insiders remain optimistic about an upsurge.
According to crypto analyst James Check, the historic movement from the current price point to the point above $73k could mark the beginning of Bitcoin’s acceleration to “escape velocity”. For explanation, “escape velocity” is an astrophysics term used to describe the minimum speed needed for an object to escape from contact with or orbit of a primary body. In the crypto sense, Check used the term to describe the expected behavior of Bitcoin after it surpasses its all-time high price.
Making reference to the short-term holder (STH) market value to realized value (MVRV) metric, the analyst explained that the Bitcoin market is far from the state of overstretch, overbought, and oversaturated. This implies that the current market situation is steady, stable, and enthusiastic. However, the “transition from enthusiasm to euphoria” is just a matter of a moment.
Whilst the transition from enthusiasm to euphoria can happen quickly, it feels like we have not reached the point of euphoric escape velocity…yet. We are still within a steady, stable, enthusiastic, but importantly NOT euphoric phase of the bull.
The Crucial Resistance Level of Bitcoin at 73k
Following his analysis, Check warned that there could be a profit taking at $73k for wallets that have held Bitcoin for less than 155 days. This may invalidate any future move thesis which includes a recent prediction by analyst Roman that was reviewed by Crypto News Flash.
Alluding to this position is crypto trader Matthew Hyland who also believes that the current upsurge to $70k was a product of excitement rather than euphoria. With these predictions meant to suggest that Bitcoin is yet to start its bull run, crypto trader Yoddha strongly believes that the asset has 300 days to set a new all-time high. Fascinatingly, his position stems from the fact that Bitcoin has been consolidating in the current stage for almost three months.
Bitcoin has been consolidating in the current range from the past 84 days, IMO from the current price, BTC will hit the Top within the next 300 days.
Ahead of this potential explosive run, whales have been actively accumulating Bitcoin with IntoTheBlock reporting that $16.8 billion worth of the asset has been purchased since the approval of the US spot Bitcoin Exchange-Traded Funds (ETFs). According to their data, the amount of assets held by whales is back to the level recorded before the collapse of the FTX exchange. However, institutional investors are the principal holders this time around.
The aggregate amount of Bitcoin held by whale addresses in aggregate is now back near the levels it was prior to the FTX collapse. However, the type of entities within this category has changed drastically – previous industry giants like Genesis, FTX and 3AC (Three Arrows Capital) got wiped out during the 2022 bear market.
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