Will Bitcoin soon return to $70,000?

Will Bitcoin soon return to $70,000? Picture 1

Bitcoin price has remained in a tight range since returning above the $60,000 mark on May 3. However, renowned crypto analyst Adrian Zduńczyk sees the asset potentially recovering to $70,000 in May, a price not seen since April 12.

Sharing on platform Bitcoin in May was around 70,000 USD. Additionally, the 200-day moving average also hit an all-time high this week above $50,000.

Mr. Zduńczyk also pointed out that market sentiment is still in a 'greedy' phase, citing data from the Crypto Fear and Greed Index.

The average May gain in previous market cycles was around 15%, which encouraged Adrian Zduńczyk to conclude that opening the month at $60,600 would imply an estimated target by the end of the month. month is 70,000 USD.

Agreeing with Mr. Zduńczyk's point of view, another industry expert, Mr. Anthony Pompliano observed and noted: 'Don't rush to sleep because Bitcoin is going sideways. The long-term thesis remains as strong as ever.'

Earlier this week, cryptocurrency exchange Bitfinex reported that several on-chain indicators suggested that selling pressure from short-term holders may be waning.

Furthermore, former BitMEX CEO Arthur Hayes also commented on how the local bottom has passed as Bitcoin price reached $56,800 and the market will remain in the $60,000 to $70,000 range until around August.

On another positive note, founder and CEO of online chain and market analysis company CryptoQuant Ki Young Ju believes that Bitcoin price will potentially exceed $260,000, recording a threefold increase in market capitalization. school.

'Fundamentals can support market capitalization to triple its current size compared to the previous cycle peak,' Mr. Young Ju explained in a May 8 post on X.

Mr. Young Ju mentioned a chart comparing Bitcoin price and its associated hash rate to market capitalization, highlighting the cryptocurrency's ongoing volatility and the resilience of the Bitcoin network. The chart reveals that Bitcoin's hash to market capitalization ratio increased significantly in 2024, which indicates an increase in market activity and investor interest.

The hash rate to market capitalization evaluates the growth of mining activity relative to market capitalization. If this rate continues to increase, Mr. Young Ju stated that it could potentially sustain Bitcoin price up to $265,000. In response, analyst and trader Crypto Ceaser also pointed out that Mr. Young Ju's views are in line with their analysis, which shows that Bitcoin has formed a large cup and handle pattern on the weekly chart . This pattern forms when an asset in an uptrend retraces twice, first on a broad, shallow move that forms the cup and then on a smaller decrease that forms the handle. The cup and handle pattern is an uptrend continuation pattern, often formed during a price consolidation period.

However, the important thing here is that Bitcoin must hold above its short-term holding price of $59,500 to maintain the uptrend, crypto analyst and co-founder of CMCC Crest Willy Woo emphasized on Tuesday. 5 previously.

The cryptocurrency market fell slightly by 1.4% to $2.42 trillion in the past 24 hours. Meanwhile, Bitcoin traded around $62,000, Ethereum weakened to less than $3,000 - an important support level. Altcoins are mostly in the red, with larger losses seen in Solana, Dogecoin and Avalanche.

Jessica Tanner

Update 09 May 2024