A crypto analyst suggests that Bitcoin’s return to $73,000 could signify the start of its acceleration to what he terms “escape velocity,” drawing a parallel from astrophysics where it denotes the minimum speed required for an object to break free from a celestial body’s gravitational pull without additional propulsion.
James Check, the analyst, referenced the short-term holder (STH) market value to realized value (MVRV) metric in a May 21 report, indicating that the market isn’t yet “overstretched, overbought, and over-saturated.”
While acknowledging the potential for a rapid transition from enthusiasm to euphoria, Check believes Bitcoin hasn’t reached the stage of euphoric escape velocity yet. He sees the current phase as steady and stable, laying strong foundations for a price rally at the $73,000 mark.
However, Check cautioned that at this price level, short-term holders, who have held Bitcoin for less than 155 days, may be in sufficient profit, potentially triggering a sell-off and causing some resistance.
Other crypto analysts share the sentiment that market euphoria has yet to materialize. Matthew Hyland noted the absence of excitement or euphoria despite Bitcoin hovering around $70,000, while another pseudonymous trader, Jelle, believes Bitcoin is on the verge of entering price discovery.
Similarly, pseudonymous trader Yoddha predicts that Bitcoin will reach its peak price before March 18, 2025, suggesting that it’s been consolidating within a certain range for the past 84 days and anticipates a significant move in the next 300 days.
A jump to $73,000 from Bitcoin’s current price of $69,088 represents an increase of approximately 5.6%, according to CoinMarketCap data.
May 2024, Cryptoniteuae
