This week has been quite bullish for the Bitcoin price as it has seen a momentous break above $70,000. Although this is bullish, there are still some reservations as to the performance of the digital asset and what it could mean for its future. To this end, Bitget research analyst Lacie Zhang shares views on what the BTC price is doing, outlining the major factors that are currently influencing its price and the broader crypto market.
Bitcoin Price At A Major Structural Level
In a statement shared with Bitcoinist, Bitget Research Analyst Lacie Zhang said there has been a convergence of the Bitcoin realized price and the MVRV. Taking into account the performance of past cycles, the analyst points out that this could mean that Bitcoin could be nearing the end of its bear market.
The convergence of these indicators in the past has previously happened toward the tail end of a bear market, and this time could be no different. Not only this, but it is also associated with long-term accumulation, a trend that has usually preceded the bottom of a bear market.
As Zhang further explains, this could mean that investors are now moving from speculative selling to patient capital deployment. This speaks to the long-term accumulation trend, usually as large investors begin to shift their stance. Other factors are the fact that Bitcoin ETF inflows continue to rise, showing confidence from institutional players.
With these factors all aligning at almost the same time for BTC, it could mean that a trend reversal is coming. However, there is still the possibility that the price continues to decline, especially given that the broader macro dynamics have not been clear.
For one, there are still geopolitical tensions, with the US-Iran war shaking the market earlier this month. Zhang also points to the relationship between the US dollar Index and oil prices, which are tightening liquidity conditions. In such a case, risk assets tend to suffer the most, as evidenced by the decline that Bitcoin has suffered.
Predicting where the Bitcoin price could be headed, Zhang explained that “In the short term, Bitcoin is likely to fluctuate between $68,000 and $84,000 as markets search for equilibrium, while Ethereum may trade in a $1,800 to $2,500 range, supported by continued ecosystem development and growing adoption across decentralized finance and tokenized asset infrastructure.”
Featured image from Dall.E, chart from TradingView.com
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