Bitcoin Soars To $71,000, How Much Higher Can It Go?

Bitcoin (BTC), the largest cryptocurrency in the market, has once again surged past the significant milestone of $70,000. After a brief period of consolidation between $67,000 and $69,000, the price faced strong resistance at this level. 

However, the bullish momentum suggests that Bitcoin may consolidate above $70,000, paving the way for a potential retest of the next resistance at $71,300 and a potential climb towards its all-time high (ATH) of $73,700 reached in March. 

The question remains: Will BTC sustain this anticipated upward movement and surge even further?

Analyst Predicts Bitcoin Surge To $74,400

Crypto analyst Ali Martinez highlighted the significance of Bitcoin breaking out from a symmetrical triangle on the BTC/USD 1-hour chart. 

Suppose the breakout is confirmed by a sustained close above the $69,330 resistance level. In that case, Martinez believes it could propel BTC to $74,400, setting a new all-time high and positioning it favorably to conquer even higher levels.

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Martinez also emphasizes Bitcoin’s current positioning above the +0.5σ pricing band. According to the analyst, if BTC holds above this band, it will likely rise and test the 1.0σ pricing band at $79,600.

Another analyst, Rekt Capital, points out that Bitcoin is again at the Range High of the ReAccumulation Range. For Rekt, the outlook for Bitcoin remains unchanged, with the cryptocurrency being just one weekly close above the Range High away from entering the Parabolic Phase of its market cycle.

BTC’s Cycle Acceleration Signals Ongoing Bullish Trend

In addition to the analysis provided by Rekt Capital, it is worth noting that Bitcoin’s recent rally to new all-time highs in mid-March exhibited an accelerated cycle compared to previous market cycles. Rekt Capital observed that the cycle was accelerating by 260 days. 

However, due to Bitcoin’s multi-month consolidation since then, the rate of acceleration has dropped to approximately 170 days. Despite the adjustment, the cycle remains accelerated, and a breakthrough beyond the $73,700 level would indicate that the accelerated cycle is likely to continue.

Market expert Crypto Con supports the notion that Bitcoin will maintain its positive trajectory until the end of 2024, based on the analysis of the 90-day realized profit/loss ratio (RPLR). 

According to Crypto Con, the first move over an RPLR value of 11 has been completed, aligning with previous cycles that have witnessed a top at the year’s end. 

The second pinnacle from this metric, representing “the true cycle top,” is expected to occur between September of this year and January 2025. 

Crypto Con further emphasizes the significance of considering the logarithmic MVRV (Market Value to Realized Value) indicator, which has garnered significant attention during this cycle. 

The logarithmic MVRV has accurately identified cycle tops and bottoms using a converging channel. Data-wise, the cycle’s progression may be more advanced than on the surface. 

In March 2024, the price reached levels similar to those seen during the first tops in each cycle. Fortunately, Crypto Con notes that there is still ample room for growth towards the cycle top mark.

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These observations and analyses suggest that Bitcoin demonstrates strong potential for further price appreciation. The cryptocurrency’s ability to break key resistance levels and maintain bullish momentum will determine its trajectory in the coming days and whether it can surpass previous ATHs.

As of this writing, the largest cryptocurrency on the market is trading at $70,800, up 4.4% in the past seven days. 

Featured image from Shutterstock, chart from TradingView.com