Bitcoin: Will a Rise to $73,000 Trigger the ‘Escape Velocity’ Boom?

  • Bitcoin’s current pullback is considered a precursor to a possible major rally towards $73,000.
  • Market metrics and analysis indicate solid fundamentals for BTC, despite a drop in active addresses.

bitcoin [BTC] has recently shown significant bullish behavior, marking a notable rise of almost 10% from last week’s low of $65,000 to a high of $71,000 this week.

However, the cryptocurrency has seen a slight pullback and is currently trading at $68,659. Analysts consider this pause in bullish momentum to be a precursor to a possible major rally.

A return to $73,000 could signal the start of what is called the “escape velocity” phase for Bitcoin, indicating a possible acceleration from current price levels towards new highs.

Analyze market metrics and investor behavior.

Crypto analyst James Check, in a recent market report on May 21, described this price of $73,000 as crucial to Bitcoin’s trajectory.

The term “escape velocity,” borrowed from astrophysics, is used here to denote the minimum velocity Bitcoin would need to break free from its current range and begin a more aggressive price rally without additional momentum.

James Check points out the importance of the short-term holder’s market value to realized value (MVRV) metric, which he believes shows that the market is not yet “overstretched, overbought or oversaturated.”

Source: Checkonchain newsletter

Check suggests that while the market is enthusiastic, it has not yet entered a phase of euphoria that often precedes a significant pullback.

The analyst revealed that the market is building solid foundations for a rally, with $73,000 being a critical point that could trigger a more substantial rise in the price of Bitcoin.

However, there is also caution around this price level. Short-term holders, defined as portfolios that have held Bitcoin for less than 155 days, are “sufficiently profitable” at the moment, which could lead to some resistance due to potential selling pressure.

The AVIV momentum oscillator, particularly over a 90-day period, has been supportive and shows that price movements relative to on-chain capital inflows are recovering strongly, which is typical of a bull market phase.

Source: Checkonchain newsletter

Key observations from on-chain data

AMBcrypto analysis, supported by data from Santiment, indicates a decrease in active Bitcoin addresses from more than 17 million in March to less than 13 million currently.

Source: Sentiment

Despite this decline, Bitcoin has continued to show bullish movements, breaking through multiple resistance levels. This suggests that while network activity is reducing, the price is still increasing due to other factors.

glass node data Furthermore, it showed that the number of new addresses has also been decreasing, creating a pattern of lower highs and lower lows. This supports Check’s view that the Bitcoin market has not reached a state of euphoria, which typically indicates an overheated market.

Source: Glassnode

On the 30-minute chart, Bitcoin has recently broken through a crucial demand zone, hinting that the asset could pull back further to gather more liquidity before resuming its uptrend.


Read Bitcoins [BTC] Price prediction 2024-25


Source: TradingView

A key level to take into account, according to AMBCrypto

recent report, it is around $71,500. A weekly candle close above this mark could be the trigger for Bitcoin to break out of its current reaccumulation range.

This level aligns with Check’s analysis that a push above $73,000 could initiate the escape velocity phase, marking a potentially explosive next stage in Bitcoin’s market cycle.

Next: CorgiAI Price Prediction – After 331% Rally, THIS is the Next Crucial Level

This is an automatic translation of our English version.

 
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