Bitcoin (BTC) continued to exhibit resilience on Monday after surging on Sunday by roughly 5%, suggesting a shift in investor sentiment. Despite concerns earlier last week about a possible deeper plunge, Bitcoin appeared to consolidate its position for most of the day, hinting at a potentially robust month ahead.
Meanwhile, pundits have been closely monitoring Bitcoin’s trajectory, with notable figures offering insightful analysis of the cryptocurrency’s potential path. In a Sunday tweet, renowned crypto analyst Gert van Lagen pointed out that Bitcoin had breached the 1.618 extension of the 2018 bear market at $62,000 and successfully tested it as support this week.
Drawing parallels from previous market cycles, Van Lagen noted that historically, when Bitcoin achieved this milestone, it eventually surged to the 2.272 extension level, currently estimated at $207,000.
“BTC has broken the 1.618 extension of the 2018 bear market at $62k, and this week tested it successfully for support. Previous two cycles when this happened, price topped within 2-3 months at the 2.272 extension. The 2.272 extension currently lies at $207k.” Wrote Lagen
He further emphasized that a recurring structure was observed based on the recovery patterns of the 2011, 2014, and 2018 bear markets, suggesting a potential surge in the near future. Notably, Van Lagen believes this target could be attained before next month’s halving event.
Notably, Lagen’s bullish analysis echoed sentiments expressed by another prominent analyst, “Crediblebullcrypto,” who labelled the current market trend as an “Ultra Bull” phase. In a recent video, the pundit asserted that the ongoing correction was expected market behaviour. He also highlighted a “five wave” based on the Elliot Wave theory, indicating the potential for Bitcoin to surge to roughly $200,000 following the conclusion of the current correction.
On Sunday, analyst Bitquat forecasted a new all-time high (ATH) before the halving, with a potential run to “at least $95,000 by the end of May” due to its unprecedented nature in Bitcoin’s history.
In a separate development, cryptocurrency analyst Ali Martinez noted that last Thursday, over 25,000 Bitcoin, valued at approximately $1.60 billion, were moved to accumulation addresses, marking the highest inflow to these wallets this year, which is a positive sign for Bitcoin.
However, it’s important to note that Bitcoin’s MVRV (Market Value to Realized Value) ratio, which surged significantly earlier in the year, is now experiencing a slight downturn and has settled at 2.34, as highlighted by crypto analytics firm IntoTheBlock. Historically, an MVRV ratio above 3 has been a reliable indicator for predicting price peaks. Therefore, a decrease in the MVRV ratio could suggest that Bitcoin’s price may not reach new highs in the near term.
At press time, BTC was trading at $66,856, reflecting a 2.71% surge over the past 24 hours, as per CoinMarketCap.
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