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On Monday, Bitcoin hit $50,000 for the first time since December 2021, in what’s considered a landmark accomplishment for the crypto asset after nearly two years of navigating a bearish market.
Lots of factors are contributing to Bitcoin’s meteoric rise, including fresh institutional interest following the approval of Bitcoin ETFs, the reduction in outflows from the Grayscale Bitcoin Trust, and the BTC halving getting closer.
As CryptoPotato reported, Bitcoin has experienced a 15% increase in value over the past seven days. This has prompted renowned market observers to shed light on BTC’s future trajectory and analyze market conditions.
How High Can BTC Go?
Popular analyst Dan Gambardello notes a historical pattern where Bitcoin’s price tends to reach all-time highs within 1-3 months after closing a monthly candle above a bull market door. According to Gambardello, breaking this cycle’s doors means BTC could close above $57,000 in this cycle.
Every time since 2013 Bitcoin has closed a monthly candle above the bull market doors, BTC has broken all time highs within 1-3 months.
Breaking the doors this cycle means BTC closing above $57,000.
This has always occurred after Bitcoin halving. pic.twitter.com/WL9EfNBDwV
— Dan Gambardello (@cryptorecruitr) February 12, 2024
CryptoCon adds another layer to the analysis by examining Bitcoin’s adherence to “Magic Bands” levels. Despite recent fluctuations, Bitcoin has been respecting these levels consistently.
Currently, it is retesting Level 2 at $49,600, with Level 3 looming above at $84,500. The attainment of Level 3, historically unprecedented outside the context of a cycle top parabola, could mark a significant milestone if the current price trajectory persists.
Retracement Potential
Not all analysts share a uniformly bullish outlook. According to insights from CryptoQuant, there’s a looming suspicion of a potential price correction, given the high probability indicated by the current SOPR Ratio.
The SOPR is a popular on-chain metric for analyzing market sentiment and behavior by assessing the profit ratio of market participants by comparing the value of spent outputs at the time of expenditure (realized value) to their value at creation.
Waiting for Dumb Money Selling at a Loss
“There’s a suspicion that a price correction could occur at any moment from this point, given the high probability indicated by the current SOPR Ratio.” – By @Woo_Minkyu
Full post 👇https://t.co/xM7MGyUT8A pic.twitter.com/gZSu85alP1
— CryptoQuant.com (@cryptoquant_com) February 12, 2024
Likewise, the current position of Bitcoin suggests that holders who are in profit are taking the opportunity to realize gains and sell, a behavior often associated with “Smart Money.”
Similarly, renowned analyst Ali warns his followers on X about a BTC pattern that has been occurring for the past two years. Ali says BTC tends to enter a correction phase when the 30-day MVRV (Market Value to Realized Value) ratio exceeds 11.50%. The ratio has again crossed the 11.50% threshold, signaling caution for traders.
BTC At $50k Without FOMO?
Most analysts remain bullish on Bitcoin’s strength, particularly noting the potential liquidation of short positions as a fuel for further upward movement. On that note, there’s $191 million in liquidations, with 57,000 traders getting liquidated in 24 hours.
Interestingly, Google searches for “Bitcoin” have remained unchanged over the past few weeks. Users could argue BTC could be detaching temporarily from mainstream attention despite the increased accessibility through spot ETFs.
Hovering around $50k and google search trends for “bitcoin” look like this lol pic.twitter.com/j0S4Cs1lgp
— Will (@WClementeIII) February 12, 2024
This article first appeared at CryptoPotato
