If this happens, Bitcoin could hit new local highs: CryptoQuant

This week, Bitcoin (BTC) reached a high of $64,000 before falling back to the current price mark below $62,000. This downward price trend raises the question of whether the leading crypto asset can reach new heights in the near future.

Analysts at CryptoQuant have shared research showing that the leading crypto asset may be able to maintain its current price range and even unlock higher levels.

Bitcoin at a psychological tipping point

Historically, market participants have been pessimistic about losing their BTC holdings after a sharp drop in price. Conversely, if the BTC portfolio is in the green zone, investors will be optimistic.

Analysts at CryptoQuant say the major cryptocurrencies are currently between a “major psychological tipping point and an optimistic zone,” and market participant sentiment could drive Bitcoin’s movement or send it plummeting. He emphasized that the situation is at a certain stage. Emphasizing the need for BTC to remain in the optimistic zone, the analyst wrote:

“Historical data shows that maintaining stability in these key zones is critical to the continuation of a bull market. Specifically, they reflect periods where investors are making profits.” The “Profit Supply” indicator shows that optimism tends to increase when a large portion of the supply is profitable. Bitcoin's current price level is currently testing this realm of optimism. ”

As highlighted by analysts, Bitcoin has stabilized between these two zones in past market cycles, leading to a continued upward price trend. CryptoQuant experts added that as long as BTC remains in the optimistic zone, its price could rise to new regional heights.

Will BTC remain optimistic?

Bitcoin supporters are hoping for a bullish trend in the market, but BTC may not be able to meet the expected growth. Here's why:

There is talk that the US government is planning to sell 69,370 BTC worth about $4.3 billion seized from the dark web market Silk Road. If the government implements its plan, it could trigger a bearish trend in the bitcoin market, as seen with Germany's bitcoin sale earlier this year.

American stockbroker Peter Schiff has suggested that Michael Saylor of MicroStrategy step in to acquire a stash of Bitcoin to prevent asset prices from suffering a catastrophe.