Though the direction is yet unknown, the most often used cryptocurrency in the world, Bitcoin seems ready for a significant movement. Whether a protracted consolidation period or a positive breakout is coming divides analysts.
Reaching New Highs: Euphoric Bulls On The Horizon?
With his “Euphoric Bull” idea, eminent crypto analyst Checkmate has set up a fire of hope. Checkmate claims that a spike to a new all-time high may indicate a fundamental change in market attitude. With a notable escalation in bullish momentum this kind of bull phase would reflect, a larger price increase may result.
Checkmate’s theory depends on the Market Value to Realised Value (MVRV) ratio, a measure of the total value spent to acquire all Bitcoins in use against their current market value. Historically, a change to a “Euphoric Bull” phase has typically followed a spike in the MVRV ratio above one standard deviation of its average.
#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
Checkmate cautions, though, that Bitcoin does not always play out the script on the first time. The market shows cautious behaviour most of the time; Bitcoin can try to reach this important MVRV level several times before a clear break.
Following a spike that saw the alpha crypto hit a six-week high of $71,950, Bitcoin’s latest consolidation period marks With a good daily trading volume, Bitcoin is still trading comfortably near the $70,000 mark even if a small retracement has happened. This price movement points to a possible stop before the next major action, hence the present moment is a tense waiting game for investors as well as traders.
Breakout Or Consolidation? A Bullish Dilemma
One of the main voices in the continuous argument is crypto analyst Rekt Capital. Rekt Capital thinks a weekly candle closing above $71,500 would set off a significant breakthrough. If this mark is reached, positive momentum might explode and Bitcoin would be driven towards a clear rally.
Rekt Capital does, however, also recognise the likelihood of a protracted phase of consolidation. Historically, before showing a breakout, Bitcoin has tended to gather within its re-accumulation zone for several weeks. Rekt Capital contends that this prolonged consolidation would bring Bitcoin closer to match with previous halving cycles, occurrences that have typically preceded significant bull runs.
Bitcoin Price Prediction
Other analysts, however, see the top cryptocurrency in the globe having a potential banner year in 2025. Driven by elements like past price trends and the forthcoming Bitcoin halving cycle, the high-end estimate of $168,459 shows an amazing possible growth. Technical signals pointing to a “Bullish” market attitude with a strong dosage of “Extreme Greed” buoy this hope.
Still, one needs a dosage of reality. The huge spread between the expected high and low ($69,971) emphasises how naturally imprecise these estimates are. The well-known volatility of Bitcoin, shown in the recent 4.47% price changes over just 30 days, makes matters more difficult. Although this degree of avarice points to investor confidence, it can also be a warning indication of a possible market downturn just around.
Featured image from Vecteezy, chart from TradingView