Bitcoin's Market Cap Could Triple, Driving Price Above $260,000, Predicts CryptoQuant CEO
Summary:
CryptoQuant CEO, Ki Young Ju, predicts that Bitcoin could triple its market capitalization, potentially pushing its price over $260,000. This projection is based on an increase in Bitcoin's hash rate to market cap ratio amidst ongoing volatility. Crypto analysts and traders have echoed the bullish sentiment, noting patterns that appear to support this upward trend. However, Bitcoin's price needs a strong closure above the 50-day simple moving average to maintain the bullish trend.
The value of Bitcoin (BTC) has the potential to exceed $260,000, tripling its market capitalization, as stated by Ki Young Ju, CEO and Founder of CryptoQuant, a company offering on-chain and market analytics. Young Ju, in a May 8 post, opined that the fundamentals of the Bitcoin network might support a tripling of the current market cap compared to the previous cyclical top. The post mentioned a chart showing Bitcoin’s hash rate relative to market cap ratio, indicating increased market activity and investor interest in the face of the cryptocurrency's volatility and the robustness of the Bitcoin network. If the hash rate to market cap ratio continues to expand, Young Ju suggests it could support a Bitcoin value of $265,000.
Crypto Ceaser, a trader and analyst, responded positively, stating the analysis aligns with his own that showed Bitcoin developing a large 'cup-and-handle' pattern on the weekly chart. This pattern usually appears during bullish trends and is a positive sign for continuation. The pattern predicts a potential Bitcoin rise to a target of $273,693.
Crypto Ceaser added that Bitcoin's price consolidation below all-time highs is a critical phase and that a summertime uptrend will result in an energetic upward surge, possibly leading to a shorter cycle. On May 3, Willy Woo, a pseudonymous co-founder of CMCC Crest, chimed in on the importance of Bitcoin staying above $59,500, the short-term holder price, to sustain this bullish trend.
Glassnode analysts, in their May 7 report, added that the average short-term buyer price has consistently functioned as a solid barrier in bearish trends and a reliable support during bullish trends. They report a market correction and subsequent rally after dipping below the short-term holder cost basis at $59,800.
For continued bullish performance, Bitcoin will need to establish a decisive daily candlestick closure above the 50-day simple moving average (SMA), as per digital currency commentator, Lark Davis. Negentropic, a Glassnode co-founder, echoed this sentiment and suggested the BTC target could surge to 85.2K before summer if it breaches the 65-66K mark.
Bitcoin’s volatility is gradually easing as the cryptocurrency continues price consolidation within the current range, according to Daan Crypto Traders. This article is meant to be informative and should not be interpreted as investment advice. Risks are associated with every investment and trading move. Readers are advised to conduct their own research before making decisions.
Published At
5/8/2024 8:59:04 PM
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