Key Insights:
- Whales accumulate 65,000 BTC, suggesting strong buying pressure and potential bullish momentum.
- Analysts forecast Bitcoin could rally to $350,000 if current technical patterns persist.
- Arthur Hayes views $70,000 as potential Bitcoin bottom, advising caution amid market volatility.
Bitcoin price continues to see strong buying activity from large investors, with whales accumulating over 65,000 BTC in the past month. Market analysts remain divided on the cryptocurrency’s short-term price movement, but some predict a potential rally toward $350,000 if key patterns hold.
Bitcoin Retests Key Levels Amid Strong Buying Pressure
As CryptoQuant analyst Cauê Oliveira pointed out, whales have been purchasing greater than 65,000 BTC in the previous 30 days. This can be interpreted as high demand from active traders, meaning that existing large market participants help keep support levels high. According to IntoTheBlock on-chain data, there are two base levels, first at $79,270 and the second one being at $69,450.
Crypto trader Michaël van de Poppe noted that Bitcoin’s chart remains strong. He stated that if Bitcoin tests $84,000 again and breaks past its previous high, it could indicate a reversal of the current trend.
Meanwhile, based on an analysis made by TradingView analyst, Ali Charts, Bitcoin recently retested the area which was the resistance line of the Head & Shoulders pattern established over several years. Therefore, based on this progression, the next price level that might be achievable might be $350,000.
Arthur Hayes Predicts Bitcoin Price Bottom at $70,000
Regarding the current situation, Arthur Hayes, formerly the CEO of BitMEX, claimed that this is possible to go down to 70,000 before it continues an uptrend. He explained this as a regular pullback in a bullish trend which was the case concerning the S&P; 500 index. To him, Bitcoin fluctuates alongside other financial markets, including the S&P 500 and Nasdaq.
According to Hayes, if traditional financial markets get weaker, there is likelihood that a large commercial rally can be observed. In this case, constituents like Federal Reserve, the European Central Bank, and the Bank of Japan may employ easing measures to pump up liquidity into Bitcoin. He urged the traders to remain patient and avoid putting much capital into the market until there was more certainty.
Additionally, he warned of potential volatility, citing a large number of options contracts between $70,000 and $75,000. If Bitcoin fails to hold above $78,000, it could drop further to $75,000.
Bitcoin’s Growth Rate Reaches New Lows
Currently, Bitcoin’s four-year Compound Annual Growth Rate was 8% being the lowest it has been since December last year according to Glassnode. This metric is also consistent with the Bitcoin’s halving cycles and a standard bull and bear market.
Looking back on past cycles, bitcoin has gone through a period of significant growth over a long-term period whereas the current CAGR shows lower gain.
The market research by K33 shows that there has been selloffs in both equities and the cryptocurrencies in recent past due to the volatile global economy. Bitcoin dipped to $76,555 and slightly bounced back and trading above $80,000. Analysts say that such fluctuation is due to various macroeconomic aspects, investors’ moods, and regulation changes.
Long-Term Price Targets and Market Outlook
Despite short-term volatility, analysts believe Bitcoin could be in an accumulation phase. A key support zone between $73,000 and $65,000 may serve as a foundation for the next bullish cycle. If Bitcoin maintains this range, analysts predicts a potential short term recovery toward $95,000.
Concurrently, crypto analyst CryptosRus emphasized Bitcoin’s potential to reach $350,000 if its Head & Shoulders pattern confirms.
Amid these Bitcoin price predictions, Senator Cynthia Lummis expressed optimism about digital assets, stating, “This is the year for Bitcoin and digital assets.” Meanwhile, some analysts argue that Bitcoin’s recent underperformance is temporary and that long-term adoption trends remain strong.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.