Why Bitcoin might drop to $65k before getting back to ATH
Will Bitcoin Dip to $65K Before Surging Again?
Bitcoin is currently consolidating around $68K after peaking at $70K, influenced by Ethereum ETF excitement. It might need to drop to $65K before aiming for a new all-time high. On-chain metrics suggest Bitcoin is slightly overvalued, leading to a potential consolidation phase as the market seeks balance. Despite a decrease in active addresses, Bitcoin's stable price suggests a bullish outlook, with increased trading volumes and a dominance of long positions indicating strong trader confidence. However, volatility and price corrections remain a risk.
What recent event caused Bitcoin to hit $70K last week, and how has it influenced the market?
The recent event that caused Bitcoin to hit $70K last week was the hype surrounding the approval of Ethereum (ETH) exchange-traded funds (ETFs) in the U.S. This development boosted the overall market sentiment and contributed to Bitcoin's surge past the $70,000 milestone6. The market has since shown signs of stabilization, with on-chain metrics and bullish trader activity indicating a potential consolidation phase before Bitcoin makes its way back to its all-time high. The increased trading volume and long positions across major platforms suggest a generally bullish outlook among traders.
Despite the decline in active Bitcoin addresses, how has the price remained stable, and what does this imply about the market's current phase?
Despite the decline in active Bitcoin addresses, the price of Bitcoin has remained relatively stable, suggesting that the market is currently in a consolidation phase6. This stability in price despite fewer active addresses indicates a strong holding pattern among existing Bitcoin holders. Many long-term holders are likely retaining their positions in anticipation of future price increases, reflecting a level of confidence in the market's potential. This behavior supports the notion that the market is not heavily influenced by the change in active users at this moment but is rather driven by the collective sentiment of long-term investment and the strategic decisions of seasoned traders and investors6. This consolidation phase is characterized by a balance-seeking behavior between price levels and transaction volumes, setting the stage for a possible future bull run once the market conditions are deemed favorable6.