Bitcoin’s price has the potential to triple its market capitalization and reach over $260,000, according to Ki Young Ju, the founder and CEO of CryptoQuant. In a post on X, Young Ju explained that the Bitcoin network fundamentals indicate that its market cap could be three times its current size compared to the last cyclical top. He referred to a chart that compared Bitcoin’s price and hash rate to market capitalization ratio, which showed the crypto’s volatility and the resilience of the Bitcoin network. The chart revealed a significant increase in Bitcoin’s hash rate to market cap ratio in 2024, suggesting a possible rise in market activity and investor interest. Young Ju stated that if this ratio continues to grow, Bitcoin’s price could potentially reach $265,000.
Crypto Ceaser, an analyst and trader, supported Young Ju’s views, pointing out that BTC had formed a large cup-and-handle pattern on the weekly chart. This pattern occurs when an asset retraces twice during a bullish trend, forming a cup and a handle. It is a bullish continuation pattern that typically occurs during a consolidation period. If confirmed, the chart projected a BTC rally towards the technical target of $273,693.
However, Crypto Caesar noted that Bitcoin’s price is currently in a critical area, consolidating below its all-time highs. It is crucial for Bitcoin to maintain its bullish trend by holding above its short-term holder price of $59,500. Glassnode analysts also highlighted the importance of the average short-term holder acquisition price, which acts as a strong support during bullish trends.
Some traders believe that Bitcoin needs to produce a decisive daily candlestick close above the 50-day simple moving average (SMA) to remain bullish. Lark Davis, a crypto influencer, shared this sentiment, emphasizing the need for a breakout and a strong daily candle close above the 50-day SMA.
Bitcoin’s volatility has been cooling off, with the price consolidating in its current range. However, crypto trader Daan Crypto Traders expects this to change as time goes on and the price moves out of this range.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.