Over the past two months, the leading cryptocurrency Bitcoin has shown a steady correction trend, with the price falling from a high of $73,794 to $60,987, a loss of 17.8%. It is worth noting that the recent April 19 halving also accelerated the downward momentum, a phenomenon known as post-halving correction. However, BTC price forecasts indicate that a 20-30% retracement is common for Bitcoin price to recover from depletion, indicating that the overall market trend remains bullish. Masu.
Also read: Are Bitcoin and Ethereum whales buying every drop in price and immediately bailing out?
Bitcoin's strong hash rate suggests the possibility of a price hike
A recent analysis shared by Ki Young Ju, founder of CryptoQuant, states that the fundamentals of the Bitcoin network are sufficient to potentially support a market capitalization three times the current level compared to the previous cycle peak. It is emphasized that it is extremely robust. This could push the Bitcoin price to $265,000, according to Ju's interpretation of CryptoQuant data.
The graph Ju referenced shows the ratio of Bitcoin price to market capitalization to hashrate, showing that network strength has improved significantly since its previous peak. This data shows a scenario where the hashrate triples while the price level remains constant, suggesting strong fundamental stability and increased efficiency in Bitcoin mining operations.
An increase in hashrate at similar price levels indicates that the market capitalization may be undervalued based solely on network fundamentals, establishing a theoretical basis for significant price increases.
By the end of 2024, the total circulating supply of Bitcoin is expected to reach approximately 19,802,075 BTC, considering the addition of 450 BTC every day. To reach the price target of $265,000 per Bitcoin, the required market capitalization would be approximately $5,248 billion.
Also read: Bitcoin Price Analysis: Is this your only chance to buy BTC at $62,000 before $100,000?
BTC Price Prediction: Assessing Key Fibonacci Levels as Whales Consolidate Holdings
Analyzing the weekly timeframe chart, we can see that the BTC price is trying to find suitable support at the 38.2% Fibonacci retracement level. In theory, this tool provides an important support level for buyers to capture new demand pressures amidst an active correction trend.
A long wick rejection candle at 38.2% and $60,000 total support indicates that buyers will continue to accumulate this asset during market corrections, which is an important feature observed in established uptrends.
Additionally, Santiment, a leading crypto analysis firm, reports significant accumulation of Bitcoin by large investors. With the price of Bitcoin fluctuating between $61,000 and $64,000, wallets holding between 1,000 and 10,000 BTC added a total of approximately 15,121 Bitcoin to their holdings in the past 24 hours. This surge in accumulation is appreciated. At about $941 million, these whales' holdings were the highest in the past two weeks.
This whale activity increases the likelihood of a potential rebound, potentially pushing it above the previous high of $73,794.
However, even if BTC holders lose the $60,000 support, buyers still have the upper hand while the price remains above 38.2% and 50% of the FIB levels of $51,600 and $44,600. will continue to be a powerful force.
technical indicators
- Exponential moving average: The sharp rise in the weekly EMAs (20, 50, 100, 200) highlights the overall bullish sentiment in the market.
- Average direction index: The weekly ADX slope has recovered from 60%, indicating that the asset is entering a brief cooling period to regain strength towards higher gains.
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