Bitcoin’s recent rally has been driven by excitement rather than euphoria, according to an analyst. However, this analyst warns that a potential move to $73k could trigger a massive sell-off as wallets that have held Bitcoin for less than 155 days take profit. Currently, Bitcoin is trading at $69k, but it is expected to make a dramatic return to $73k after a bullish reversal from below $65k. Despite a slight dip of 0.3% in the last 24 hours, Bitcoin has seen gains of 5% and 35% in the last seven days and 90 days, respectively.
Although trading activities have slowed down in the past few days, market insiders remain optimistic about a future upsurge. James Check, a crypto analyst, believes that the movement from the current price point to above $73k could mark the beginning of Bitcoin’s acceleration to “escape velocity.” This term, borrowed from astrophysics, refers to the minimum speed needed for an object to escape from contact or orbit with a primary body. In the context of Bitcoin, it describes the expected behavior of the cryptocurrency after surpassing its all-time high price.
Check explains that the Bitcoin market is currently steady, stable, and enthusiastic, as indicated by the short-term holder market value to realized value metric. However, he cautions that the transition from enthusiasm to euphoria can happen quickly, and the market has not reached the point of euphoric escape velocity yet.
Check’s analysis also raises concerns about a potential profit taking at $73k by wallets that have held Bitcoin for less than 155 days. This could invalidate predictions of future movements, including one made by analyst Roman. Another crypto trader, Matthew Hyland, also believes that the current upsurge to $70k is driven by excitement rather than euphoria, suggesting that Bitcoin’s bull run has not yet begun. However, crypto trader Yoddha disagrees and predicts that Bitcoin has 300 days to set a new all-time high, citing the cryptocurrency’s consolidation phase over the past three months.
In preparation for a potential explosive run, whales have been actively accumulating Bitcoin. IntoTheBlock reports that $16.8 billion worth of Bitcoin has been purchased since the approval of US spot Bitcoin Exchange-Traded Funds (ETFs). The amount of Bitcoin held by whale addresses has returned to pre-FTX collapse levels, but this time institutional investors are the main holders.
In conclusion, Bitcoin’s recent rally is driven by excitement, but there is potential for a sell-off at $73k. Analysts have differing views on whether Bitcoin’s bull run has started, with some believing it is still to come while others predict a new all-time high within 300 days. Whales are accumulating Bitcoin, and institutional investors are now the main holders of the cryptocurrency.