Bitcoin
Bitcoin Soars to $71,000, How Much Higher Can It Go?
Bitcoin (BTC), the largest cryptocurrency on the market, has once again surpassed the significant $70,000 mark. After a brief period of consolidation between $67,000 and $69,000, the price faced strong resistance at this level.
However, the bullish momentum suggests that Bitcoin could consolidate above $70,000, paving the way for a potential retest of the next resistance at $71,300 and a potential climb towards its all time high (ATH) of $73,700 reached in March.
The question remains: will BTC sustain this predicted upward movement and rise further?
Analyst predicts Bitcoin rise to $74,400
Crypto Analyst Ali Martinez highlighted the importance of Bitcoin breaking out of a symmetrical triangle on the 1-hour BTC/USD chart.
Suppose the breakout is confirmed by a sustained close above the $69,330 resistance level. In this case, Martinez believes it could propel BTC to $74,400, setting a new all-time high and positioning it favorably to conquer even higher levels.
Martinez also emphasizes Bitcoin’s current positioning above the +0.5σ price range. According to For the analyst, if BTC remains above this range, it will likely rise and test the 1.0σ price range at $79,600.
Another analyst, Rekt Capital, points that Bitcoin is once again in the High End of the Reaccumulation Range. For Rekt, the outlook for Bitcoin remains unchanged, with the cryptocurrency just one week away from closing above the high range of entering the parabolic phase of its market cycle.
BTC Cycle Acceleration Signals Continued Uptrend
In addition to the analysis provided by Rekt Capital, it is worth noting that Bitcoin’s recent rally to new all-time highs in mid-March exhibited an accelerated cycle compared to previous market cycles. Rekt Capital observed that the cycle was accelerating by 260 days.
However, due to Bitcoin’s multi-month consolidation since then, the acceleration rate has dropped to approximately 170 days. Despite the adjustment, the cycle remains accelerated, and an advance beyond the $73,700 level would indicate that the accelerated cycle it is likely to continue.
Market expert Crypto Con supports the notion that Bitcoin will maintain its positive trajectory until the end of 2024, based on analysis of the 90-day realized profit/loss ratio (RPLR).
According to for Crypto Con, the first move above an RPLR value of 11 has been completed, aligning with previous cycles that witnessed a peak towards the end of the year.
The second peak of this metric, representing “the true top of the cycle”, is expected to occur between September this year and January 2025.
Crypto Con further emphasizes the importance of considering the logarithmic indicator MVRV (market value to realized value), which has attracted significant attention during this cycle.
O logarithmic MVRV accurately identified cycle tops and bottoms using a converging channel. In terms of data, cycle progression may be further along than on the surface.
In March 2024, the price reached levels similar to those seen at the first tops of each cycle. Fortunately, Crypto Con notes that there is still ample room for growth towards the cycle’s upper mark.
These observations and analyzes suggest that Bitcoin demonstrates strong potential for further price appreciation. The cryptocurrency’s ability to break key resistance levels and maintain bullish momentum will determine its trajectory in the coming days and whether it can surpass previous ATHs.
At the time of writing, the largest cryptocurrency on the market is trading at $70,800, an increase of 4.4% in the last seven days.
Featured image from Shutterstock, chart from TradingView.com