Bitget Research Analyst Breaks Down What’s Happening With Bitcoin Price
This week has been very bullish for the Bitcoin price as it has seen a major break above $70,000. While this is bullish, there are still some reservations about the performance of the digital asset and what it could mean for its future. So far, Bitget research analyst Lacie Zhang has shared insights on what BTC’s price is doing, explaining the main factors influencing its price and the broader crypto market.
Bitcoin Price by Main Structure Level
In a statement shared with Bitcoinist, Bitget Research Analyst Lacie Zhang said that there was a convergence of the Bitcoin price and MVRV. Considering the performance of previous cycles, the analyst points out that this may mean that Bitcoin may be nearing the end of its bear market.
Convergence of these indicators in the past has occurred near the tail end of a bear market, and this time would be no different. Not only this, but it is also associated with long-term accumulation, a trend that often precedes a bear market bottom.
As Zhang further explained, this could mean that investors are now moving from speculative sales to patient capital spending. This speaks to a long-term trend of accumulation, usually when large investors begin to change their position. Another factor is the fact that Bitcoin ETF inflows continue to rise, reflecting confidence in institutional players.
With these factors all coinciding at almost the same time for BTC, it could mean that a trend reversal is coming. However, it is still possible that the price will continue to decline, especially given that the broader macro dynamics have not been clear.
For one thing, there is still political tension, as the US-Iran war shook the market earlier this month. Zhang also points out the relationship between the US dollar index and oil prices, which are factors that strengthen liquidity conditions. In such a situation, risky assets tend to suffer the most, as evidenced by the decline of Bitcoin.
Predicting where Bitcoin’s price may head, Zhang explained that “In the short term, Bitcoin may fluctuate between $68,000 and $84,000 as markets seek balance, while Ethereum may trade in the range of $1,800 to $2,500, supported by the continued development of the ecosystem and the growing adoption of decent infrastructure.”
Featured image from Dall.E, chart from TradingView.com
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