Bitcoin Price Hits ATH; What Next For BTC Price $70K or Drop To $60K?
The post Bitcoin Price Hits ATH; What Next For BTC Price $70K or Drop To $60K? appeared first on Coinpedia Fintech News
After making itself comfortable above the $68,500 mark, Bitcoin has finally hit a brand new all-time high, signaling what can only be a proper bull run for crypto. The surge pushed its value past its previous all-time high of $69,040 set back in November 2021.
ETFs and Halving Spark Bull Run
The bull run is riding on two major waves: the launch of spot Bitcoin ETFs in the United States and the upcoming halving event. These ETFs have opened up a new, steady stream of investment into Bitcoin, strengthening its reputation as a reliable store of value.
Analysts from Bitfinex, have predicted that Bitcoin could reach between $100,000 and $120,000 by the end of 2024. They believe that these spot ETFs are smoothing out Bitcoin’s price fluctuations, making any future declines less severe than in the past.
The new Bitcoin ETFs have already captured about 75% of new investments into Bitcoin, showing their significant impact on the market. At the same time, the halving, which cuts the reward for mining new coins in half, is expected to make Bitcoin scarcer, further fueling its price rise.
Is Bitcoin Price Correction on the Horizon?
Despite these highs, some experts are warning us about a potential correction in Bitcoin’s price. The Market Value to Realized Value (MVRV) ratio, a metric used to assess Bitcoin’s market position, indicates that crypto might be overvalued, hinting at a possible price correction. This sentiment is backed by crypto analyst Ali Martinez, who noted that whenever the MVRV ratio exceeded 18%, Bitcoin’s price historically dropped by 24% to 55%.
#Bitcoin MVRV indicator is at 19.57% right now! Since February 2021, each time it crossed the 18% threshold, $BTC price plunged by 24% to 55%.
Traders should monitor this trend as it anticipates a steep price correction! pic.twitter.com/kj3ysZPC46
— Ali (@ali_charts) March 5, 2024
Bitcoin’s market has indeed been lively, with $158.37 million in Bitcoin liquidations over a single day, showing the high stakes and speculative nature of current trading activities.
Some experts believe that the current surge bears striking resemblance to the bullish market of 2021, driven by retail investors. There is a considerable risk of these investors deciding to just sell and take profits, and that could potentially influence the market dynamics and investor behavior, therefore pulling Bitcoin down below $65k, perhaps temporarily.
Filed under: Bitcoin - @ March 5, 2024 4:18 pm