- One analyst explains that the recent rally in Bitcoin is due more to excitement than euphoria, however, the possible move towards $73,000 could be the beginning of “escape velocity.”
- It also warns that wallets that have held Bitcoin for less than 155 days could take profits at its peak and trigger a sell-off.
Bitcoin(BTC) continues to warm up at $69k to return to $73k after embarking on a bullish pullback from below $65k. At press time, Bitcoin was down 0.3% in the last 24 hours, but it had risen 5% and a 35% in the last seven and 90 days respectively.
Over the past two days, trading activities have plummeted, with both the diluted market capitalization and actual valuation plummeting marginally. However, market insiders remain optimistic about a rebound.
According to himcryptanalyst James Check, The historic move from the current price point to the point above $73,000 could mark the beginning of Bitcoin’s acceleration towards “escape velocity.”
By way of explanation, “escape velocity” is an astrophysical term used to describe the minimum velocity necessary for an object to escape the contact or orbit of a primary body. In the cryptographic sense, Check used the term to describe the expected behavior of Bitcoin after surpassing its all-time high price.
Referring to the short-term holder (STH) market value to realized value (MVRV) metric, the analyst explained that the Bitcoin market is far from the state of overexertion, overbought and oversaturation. This implies that the current market situation is stable and enthusiastic. However, the “transition from enthusiasm to euphoria” is only a matter of a moment.
Although the transition from enthusiasm to euphoria can occur quickly, it feels like we haven’t reached the point of euphoric escape velocity… yet. We are still in a stable, enthusiastic, but above all NOT euphoric bull phase.
Bitcoin’s crucial resistance level at 73k
Following its analysis, Check warned that there could be $73k in profit taking for wallets that have held Bitcoin for less than 155 days. This may invalidate any future movement thesis that includes a recent prediction by analyst Roman that was reviewed by Crypto News Flash.
Alluding to this position is crypto trader Matthew Hyland who also believes that the current rally to $70k was a product of excitement rather than euphoria. With these predictions meant to suggest that Bitcoin has yet to begin its bull run, crypto trader Yoddha firmly believes that the asset has 300 days to establish a new all-time high. Interestingly, his position stems from the fact that Bitcoin has been consolidating at the current stage for almost three months.
Bitcoin has been consolidating in the current range since the last 84 days, IMO from the current price, BTC will peak within the next 300 days.
Ahead of this potential explosive run, whales have been actively accumulating Bitcoin with IntoTheBlock reporting that $16.8 billion of the asset has been purchased since the approval of spot Bitcoin exchange-traded funds (ETFs) in the US. According to their data, the amount of assets in the hands of whales has returned to the level recorded before the FTX stock market crash. However, institutional investors are the main holders this time.
The total amount of Bitcoin held by whale addresses has returned to pre-FTX crash levels. However, the type of entities within this category has changed dramatically: previous sector giants, such as Genesis, FTX and 3AC (Three Arrows Capital), disappeared during the 2022 bear market.
