Bitcoin’s recent rally is driven by excitement rather than euphoria, but it could be the start of a significant upward movement towards $73k, according to an analyst. However, the analyst also warns that wallets holding Bitcoin for less than 155 days may take profit at its peak, triggering a massive sell-off.
Bitcoin is currently trading at $69k and is expected to make a dramatic return to $73k after a bullish reversal from below $65k. Although Bitcoin is down by 0.3% in the last 24 hours, it has seen a 5% increase in the last seven days and a 35% increase in the last 90 days.
Trading activities have slowed down in the past couple of days, leading to a slight decrease in market cap and valuation. However, market insiders remain optimistic about a potential upsurge.
Crypto analyst James Check explains that Bitcoin’s movement from its current price point to above $73k could be the beginning of its acceleration to “escape velocity.” This term, borrowed from astrophysics, describes the minimum speed required for an object to escape from a primary body’s orbit. In the crypto context, Check uses it to describe Bitcoin’s expected behavior after surpassing its all-time high price.
Referring to the short-term holder (STH) market value to realized value (MVRV) metric, Check explains that the Bitcoin market is not yet overstretch, overbought, or oversaturated. This indicates that the current market situation is stable and enthusiastic. However, the transition from enthusiasm to euphoria could happen at any moment.
Although the transition from enthusiasm to euphoria can occur quickly, it seems that Bitcoin has not reached the point of euphoric escape velocity yet. The market is currently in a steady, stable, and enthusiastic phase of the bull run.
Check cautions that there may be profit-taking at $73k for wallets that have held Bitcoin for less than 155 days. This could invalidate any future predictions, including one made by analyst Roman, which was reviewed by Crypto News Flash.
Crypto trader Matthew Hyland also believes that the current surge to $70k is driven by excitement rather than euphoria. This suggests that Bitcoin’s bull run has not yet started. On the other hand, crypto trader Yoddha predicts that Bitcoin has 300 days to reach a new all-time high, based on the fact that it has been consolidating in the current stage for almost three months.
Whales have been accumulating Bitcoin ahead of this potential explosive run, with $16.8 billion worth of the asset purchased since the approval of US spot Bitcoin Exchange-Traded Funds (ETFs), according to IntoTheBlock. The amount of assets held by whales is now back to pre-FTX collapse levels, but this time institutional investors are the primary holders.
In conclusion, Bitcoin’s recent rally is driven by excitement rather than euphoria, and it could be the beginning of a significant upward movement towards $73k. However, profit-taking by short-term holders could trigger a massive sell-off. The market is currently stable and enthusiastic, but the transition to euphoria is imminent. Traders have different predictions on when the bull run will start, with some suggesting it is still a few hundred days away. Whales have been accumulating Bitcoin, and institutional investors are now the main holders of the asset.