Bitcoin, the world's most popular cryptocurrency, appears to be poised for a big move, but the trend is still shrouded in mystery. Analysts are divided on whether there is an upward breakout or an extended consolidation period ahead.
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Reaching new highs: Exhilarating bulls on the horizon?
Popular cryptocurrency analyst Checkmate has ignited a spark of optimism with his “Euphoric Bull” theory. According to Checkmate, a rise to a new all-time high could signal a decisive shift in market sentiment. This type of bullish phase would represent a significant acceleration in upward momentum, which could lead to a sharp price increase.
Checkmate's theory is based on the Market Value to Realized Value Ratio (MVRV), a metric that compares the current market value of Bitcoin to the total value paid to acquire all Bitcoin in circulation. Historically, when MVRV rises above one standard deviation from its mean, it often precedes a transition into a “euphoric bull” phase.
#Bitcoin Breaking into a new ATH historically marks a transition point from excited bull to jubilant bull.
It also coincides with the MVRV exceeding one standard deviation, but we rarely clear it on the first try.
Bull…crab…bull…
a… pic.twitter.com/4YyD179LRS– _Checkmate 🟠🔑⚡☢️🛢️ (@_Checkmatey_) May 21, 2024
However, Checkmate warns that Bitcoin does not always follow the script on the first try. The market often shows cautious behavior, as Bitcoin will likely try to break through this key MVRV level several times before a decisive breakout.
Bitcoin's latest period of consolidation follows a rally that saw the Alpha cryptocurrency reach a six-week high of $71,950. While there was a slight decline, Bitcoin It is still trading comfortably near the $70,000 level, with good daily trading volume. This price action signals a potential pause before the next significant move, making the current moment a tense waiting game for both traders and investors.
Breakthrough or unification? Bullish dilemma
Cryptocurrency analyst Rekt Capital has emerged as a major voice in the ongoing debate. Rekt Capital believes in the weekly candle Close above $71,500 It could be the catalyst for a major breakout. If this milestone is achieved, it could lead to an increase in bullish momentum, pushing Bitcoin towards a notable uptrend.
However, Rekt Capital also acknowledges the possibility of an extended consolidation phase. Historically, Bitcoin has shown a tendency to consolidate within its reaccumulation range for several weeks before experiencing a breakout. Rekt Capital argues that this extended consolidation would bring Bitcoin closer into alignment with historical halving cycles, events that historically precede major bull runs.
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Bitcoin price forecast
Meanwhile, other analysts are forecasting a potentially great year for the world's leading cryptocurrency in 2025. The high-end prediction of $168,459 represents a stunning potential increase, fueled by factors such as historical price trends and the upcoming Bitcoin halving cycle. This optimism is reinforced by technical indicators that indicate “bullish” market sentiment with a large dose of optimism. “Extreme greed.”
However, a dose of reality is needed. The wide range between the expected high and low ($69,971) underscores the uncertainty inherent in this forecast. Bitcoin's notorious volatility, demonstrated by recent price swings of 4.47% in just 30 days, further complicates matters. While this level of greed indicates investor confidence, it can also be a warning sign of a potential market correction on the horizon.
Featured image from Vecteezy, chart from TradingView