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Highlights
- The BTC Price sustainability above the combined support of 23.6% FIB and $60 level indicates a constructive pullback for buyers to regain trend control.
- Bitcoin’s Fear and Greed index at 55% indicates the market participants are positive towards a prolonged recovery trend in the near future.
- The intraday trading volume in Bitcoin is $24.9 Billion, indicating a 0.82% gain.
Over the past two months, the leading cryptocurrency Bitcoin has witnessed a steady correction trend with its price tumbling from $73,794 high to $60,987, registering a 17.8% loss. It is worth noting that the recent halving on April 19 has also accelerated the downward momentum, a phenomenon called Post-halving correction. However, BTC price prediction shows that a retracement of 20-30% is common for Bitcoin price to recuperate the exhaustion indicating the broader market trend remains bullish.
Also Read: Bitcoin and Ethereum Whales Buying At Every Price Dip, Relief Rally Soon?
Bitcoin’s Hashrate Strength Signals Potential for Massive Price Surge
In a recent analysis shared by Ki Young Ju, the Founder of CryptoQuant, the fundamentals of the Bitcoin network are highlighted as robust enough to potentially support a market capitalization three times its current size compared to the last cyclical peak. According to Ju’s interpretation of CryptoQuant’s data, this could see Bitcoin prices reaching as high as $265K.
#Bitcoin network fundamentals could support a market cap three times its current size compared to the last cyclical top, potentially sustaining a price of $265K. pic.twitter.com/GnsrSIrtuY
— Ki Young Ju (@ki_young_ju) May 8, 2024
The graph Ju referenced illustrates the Bitcoin price alongside the market cap to hashrate ratio, indicating a significant improvement in network strength since the last peak. The data, demonstrating a scenario where the price level remains constant while the hashrate has tripled, suggests strong underlying stability and improved efficiency in Bitcoin mining operations.
This increase in hashrate at similar price levels points to a possibly undervalued market cap based on network fundamentals alone, setting a theoretical foundation for substantial price growth.
By the end of 2024, the total circulating supply of Bitcoin is projected to reach about 19,802,075 BTC, considering the daily addition of 450 BTC. To hit a price target of $265,000 per Bitcoin, the required market capitalization is approximately $5.248 trillion.
Also Read: Bitcoin Price Analysis: Is This The Only Chance To Buy BTC At $62,000 Before $100,000?
BTC Price Prediction: Assessing Key Fibonacci Levels as Whales Bolster Holdings
An analysis of the weekly time frame chart shows the BTC price is trying to find suitable support at the 38.2% Fibonacci retracement level. In theory, this tool provides crucial support levels for buyers to acquire renewed demand pressure amid an active correction trend.
The long-wick rejection candle at the combined support of 38.2% and $60000 indicates the buyers continue to accumulate this asset at market correction, a key feature observed in an established uptrend.
Moreover, a leading crypto analytics firm, Santiment, reports a significant accumulation of Bitcoin by large investors. As Bitcoin prices fluctuated between $61K and $64K, wallets holding between 1,000 and 10,000 BTC have collectively added approximately 15,121 Bitcoins to their holdings over the last 24 hours. This surge in accumulation is valued. at around $941 million, marking the highest holding level for these whales in the past two weeks.
🐳 As #Bitcoin ranges tightly between $61K and $64K, large whales have made some accumulation moves over the past 24 hours. Wallets with 1K-10K $BTC have collectively accumulated ~$941M worth of coins, rebounding to their highest holding level in 2 weeks. https://t.co/NkYwRsc8Pd pic.twitter.com/LWAt03TgUP
— Santiment (@santimentfeed) May 8, 2024
This whale activity increased the possibility of potential rebound which could now surpass the prior high of $73794.
However, even if the BTC holders lose the $60k support, the buyers will remain the dominant force while the price holds above 38.2% and 50% FIB levels at $51600 and $44600.
Technical Indicator
- Exponential Moving Average: The sharp upswing in weekly EMAs (20, 50, 100, and 200) accentuates the broader market sentiment bullish.
- Average Directional Index: The weekly ADX slope reverted from 60% indicating the asset is entering a short cooling period to regain strength for higher rally.
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