This week has been very bullish for Bitcoin price as it saw a major breakout above $70,000. Although this is bullish, there are still some reservations about the performance of the digital asset and what it could mean for its future. To this end, Bitget Research Analyst Lacey Zhang shares views on what BTC’s price is doing, outlining the key factors currently impacting its price and the broader cryptocurrency market.
Bitcoin price at the main structural level
In a statement shared with Bitcoinist, Bitget Research Analyst Lacie Zhang said that there has been a convergence between Bitcoin’s realized price and MVRV. Taking into account the performance of past sessions, the analyst notes that this could mean that Bitcoin may be nearing the end of its bear market.
The convergence of these indicators has happened in the past at the end of a bear market, and it couldn’t be any different this time. Not only that, it is also associated with long-term accumulation, a trend that usually precedes a bear market bottom.
As Zhang explains, this may mean that investors are now moving from speculative selling to deploying patient capital. This speaks of a long-term accumulation trend, usually when major investors start to change their stance. Other factors are the fact that inflows from Bitcoin ETFs continue to rise, demonstrating the confidence of institutional players.
With all of these factors aligning at roughly the same time for BTC, it could mean a trend reversal is coming. However, there is still a possibility that the price will continue to decline, especially since the broader macroeconomic dynamics are not clear.
On the one hand, there are still geopolitical tensions, as the US-Iran war shook the market earlier this month. Zhang also points to the relationship between the US dollar index and oil prices, which is tightening liquidity conditions. In such a situation, risky assets tend to suffer the most, as evidenced by the decline that Bitcoin suffered.
Predicting where Bitcoin’s price could be heading, Zhang explained, “In the short term, Bitcoin is likely to fluctuate between $68,000 and $84,000 as markets search for balance, while Ethereum may trade in the $1,800 to $2,500 range, supported by continued development of the ecosystem and growing adoption across decentralized finance and tokenized asset infrastructure.”
Featured image from Dall.E, chart from TradingView.com
Editing process Bitcoinist focuses on providing well-researched, accurate, and unbiased content. We adhere to strict sourcing standards, and every page is carefully reviewed by our team of senior technology experts and experienced editors. This process ensures the integrity, relevance, and value of our content to our readers.
