- Bitcoin, after hitting a recent high of $31,000, could surge up to $48,000, according to technical analyst Coiner-Yadox.
- While corrections are anticipated, long-term holders continue to show faith in Bitcoin, keeping the supply outside of exchanges.
The crypto community is abuzz with excitement as Bitcoin, the quintessential cryptocurrency, surpasses the $31,000 mark following the approval of the first set of Bitcoin-leveraged ETFs. This has led to 76% of Bitcoin holders enjoying profits, thereby sparking speculation about a continual rise during the speculated “crypto summer”.
“Crypto summer” refers to a phase when market prices surge along with trading activity, usually following the so-called crypto winter—a period marked by challenging market conditions.
Adding fuel to the fire, Coiner-Yadox, a pseudonymous technical analyst, predicts that Bitcoin could reach a high between $44,000 and $48,000 before the end of summer or around September. This projection is informed by the 61.8% Fibonacci retracement level and the Livermore accumulation cylinder trendline, which signifies an
“accumulation cycle with a widening mouth”.
As per the analysis, the Livermore indicator seems to be forming a slow but potentially explosive pattern towards the target. Coin-Yadox also suggests that the 61.8% Fibonacci level could act as a profit-taking point, potentially triggering a 30% correction due to increased selling volume when the price hits this region.
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However, regardless of these predictions, Bitcoin holders appear to be steadfast in their long-term commitment, as evidenced by the increasing state of Bitcoin supply held outside of exchanges. An increase in this metric usually denotes an anticipation of a bullish rally, while a decrease could signify diminishing confidence in long-term price action.
An examination of the price-Daily Active Addresses (DAA) divergence by analytics platform Santiment reveals that it has fallen to 97.35%. This metric offers a correlation between the overall network activity and the asset’s value.
While this shouldn’t be the sole indicator when considering entry or exit points, the current state suggests a possible strong buy signal at Bitcoin’s present price. In related news, another analyst, Pentoshi, suggests that Bitcoin might find support at $29,000, potentially paving the way for a short-term rise to $32,000.
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