Bitcoin’s recent rally is attributed to excitement rather than euphoria, according to an analyst. However, there is potential for the cryptocurrency to reach $73k, which could mark the beginning of its “escape velocity.” The analyst 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 around $69k, with a bullish reversal from below $65k. It has seen a 0.3% decrease in the last 24 hours, but a 5% and 35% increase in the last seven and 90 days, respectively.
Although trading activities have slowed down in recent days, market insiders remain optimistic about a potential upsurge. Analyst James Check explains that Bitcoin’s movement from its current price to above $73k could signify its acceleration to “escape velocity.” This term, borrowed from astrophysics, describes the minimum speed required for an object to escape from the gravitational pull of a primary body. In the context of Bitcoin, it refers to the expected behavior of the cryptocurrency after surpassing its all-time high price.
Check references the short-term holder (STH) market value to realized value (MVRV) metric to argue that the Bitcoin market is not overextended or oversaturated. The current market situation is described as steady, stable, and enthusiastic. However, Check cautions that the transition from enthusiasm to euphoria could happen quickly.
Check also warns of potential profit taking at $73k by wallets that have held Bitcoin for less than 155 days. This could invalidate any future predictions, including one by analyst Roman. Matthew Hyland, another crypto trader, agrees that the current upsurge is driven by excitement rather than euphoria, suggesting that Bitcoin’s bull run has yet to begin. On the other hand, Yoddha, a crypto trader, believes that Bitcoin has 300 days to reach a new all-time high, based on its consolidation in the current stage for almost three months.
Whales have been accumulating Bitcoin ahead of a potential explosive run, with $16.8 billion worth of the asset purchased since the approval of US spot Bitcoin Exchange-Traded Funds (ETFs). Institutional investors are now the primary holders of Bitcoin, as previous industry giants like Genesis, FTX, and 3AC got wiped out during the 2022 bear market.