Next Big Move For Bitcoin: Analysts Predict A Potential Breakout At $71,500
May 23 2024 - 3:22AM
NEWSBTC
Bitcoin, the world’s most popular cryptocurrency, appears poised
for a major move, but the direction remains shrouded in mystery.
Analysts are divided on whether a bullish breakout or an extended
consolidation period lies ahead. Related Reading: Solana Leaves
Competition In The Dust: Blazing Speed To Fuel Price Surge?
Reaching New Highs: Euphoric Bulls On The Horizon? Renowned crypto
analyst Checkmate has ignited a spark of optimism with his
“Euphoric Bull” theory. According to Checkmate, a surge to a new
all-time high could signal a critical shift in market sentiment.
This type of bull phase would represent a significant acceleration
in bullish momentum, potentially leading to a steeper price
increase. Checkmate’s theory hinges on the Market Value to Realized
Value (MVRV) ratio, a metric that compares the current market value
of Bitcoin to the total value paid to acquire all Bitcoins in
circulation. Historically, when the MVRV ratio climbs above one
standard deviation of its average, it has often preceded a shift to
a “Euphoric Bull” phase. #Bitcoin breaking to a new ATH has
historically represented a transition point from the Enthusiastic
Bull, into the Euphoric Bull. It also coincides with the MVRV ratio
getting above 1 standard deviation, but we rarely clear it on the
first attempt. Bull…Crab…Bull… A… pic.twitter.com/4YyD179LRS —
_Checkmate 🟠🔑⚡☢️🛢️ (@_Checkmatey_) May 21, 2024 However, Checkmate
warns that Bitcoin doesn’t always follow the script on the first
try. The market often exhibits cautious behavior, with Bitcoin
potentially attempting to breach this key MVRV level multiple times
before a decisive breakout. Bitcoin’s recent consolidation period
comes after a surge that saw the alpha crypto reach a six-week high
of $71,950. While a slight pullback has occurred, Bitcoin is still
trading comfortably near the $70,000 level, with a healthy daily
trading volume. This price movement suggests a potential pause
before the next significant move, making the current moment a tense
waiting game for both traders and investors. Breakout Or
Consolidation? A Bullish Dilemma Crypto analyst Rekt Capital has
emerged as a key voice in the ongoing debate. Rekt Capital believes
a weekly candle closing above $71,500 could be the catalyst for a
significant breakout. This milestone, if achieved, could trigger a
surge in bullish momentum, propelling Bitcoin towards a notable
uptrend. However, Rekt Capital also acknowledges the possibility of
an extended consolidation phase. Historically, Bitcoin has
exhibited a tendency to consolidate within its re-accumulation
range for several weeks before experiencing a breakout. This
extended consolidation, Rekt Capital argues, would bring Bitcoin
closer to aligning with historical halving cycles, events that have
historically preceded major bull runs. Related Reading: Bitcoin
Seen Breaching $73,000 As ‘Bull Run’ Looms, Analyst Says Bitcoin
Price Prediction Meanwhile, other analysts are predicting a
potential banner year for the world’s leading cryptocurrency in
2025. The high-end prediction of $168,459 represents a staggering
potential increase, fueled by factors like historical price trends
and the upcoming Bitcoin halving cycle. Buoying this optimism are
technical indicators pointing towards a “Bullish” market sentiment
with a hefty dose of “Extreme Greed.” However, a dose of reality is
necessary. The wide range between the predicted high and low
($69,971) underscores the inherent uncertainty in these forecasts.
Bitcoin’s notorious volatility, evident in the recent 4.47% price
swings within just 30 days, further complicates things. While this
level of greed suggests investor confidence, it can also be a
warning sign of a potential market correction on the horizon.
Featured image from Vecteezy, chart from TradingView
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