Bitcoin (BTC) price could continue its upward trend and triple its market capitalization to over $260,000, according to Juyoung Ki, founder and CEO of CryptoQuant, an on-chain and market analysis firm.
Youngju Joo explained in a post on
Youngjoo Joo referred to a chart comparing the price of BTC and its associated hash rate to market cap ratio, highlighting the cryptocurrency’s continued volatility and the resilience of the Bitcoin network.
The chart shows that Bitcoin’s hash rate to market capitalization ratio has increased significantly in 2024, suggesting that market activity and investor interest are likely to increase.
Hash rate to market capitalization evaluates the growth of mining activity relative to market capitalization.
If this rate continues to increase, Mr. Youngju declared that he could “potentially sustain” the Bitcoin price to $265,000.
Regarding this, analyst and trader Crypto Ceaser said: pointed out Youngju’s view was consistent with the analysis that BTC had formed a large cup-and-handle pattern on the weekly chart.
A setup is formed when a bullish trending asset retraces twice. First in wide, shallow movements that form the cup, and then back in smaller dips that form the handle. The cup handle pattern is a bullish continuation pattern that typically forms during a period of price consolidation.
If confirmed, the chart predicted a BTC rally towards $273,693, the technical target of the dominant chart pattern.
“This target is particularly high, but it is a legitimate target and technically has diminishing returns (measured from low to high).”
Crypto Caesar explained that BTC’s price is currently in “critical territory” and is consolidating below all-time highs.
He added:
“If Bitcoin can trend above its ATH this summer, we expect to see a strong rally and potentially a shorter cycle.”
It is important for Bitcoin to remain above the short-term holding price of $59,500 to “maintain a bullish trend,” Willy Woo, cryptocurrency analyst and co-founder of CMCC Crest, told his 1.1 million X followers on May 3.
Glassnode analysts said in a May 7 report that the average short-term holder acquisition price has always served as a solid barrier during downtrends and provided strong support during uptrends.
“This thesis has held up so far this week, with the Bitcoin market correcting below the STH cost threshold of $59.8,000 to support and rally higher.”
Meanwhile, some traders believe that for Bitcoin to remain strong, it needs to produce a decisive daily candlestick close to above its 50-day simple moving average (SMA).
Crypto influencer Lark Davis shared this sentiment, saying, “We now want to try to break out and create a strong daily candle close to above the 50-day SMA on the chart here.”
Related: BTC price clings to $62,000 as Bitcoin bulls experience halving ‘boring’.
“BTC is currently in the process of breaking the trend lines of the Pennant and 50 Daily SMA,” added Negentropic, an
“If levels 65-66K are broken, BTC will move first to 73.5K and then to 76.5K, with the possibility of seeing 85.2K before the summer.”
Crypto trader Daan Crypto Traders told his added. “Over time, you will see that change as the price moves out of this range.”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.