The price of Bitcoin has soared above the $71,000 Mark, rising to 3% on Tuesday, as future sentiments turn bullish, spurring optimism in the crypto market.
Analysis from Onchain suggests that the surge in the price of Bitcoin is due to some major price action following an extended period of unusually low volatility.
The rise in the price of Bitcoin comes amidst a shift in market sentiment towards a bullish market. This trend is reflected in the positive funding rate for BTC futures contracts over the past few weeks.
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Furthermore, Coingape reports that futures trading activity has also increased significantly in recent days. This behavior by futures traders, suggests that they are positioning themselves for a continuation of Bitcoin rally.
After weeks of price consolidation around the $68000/$69000 price zone, Bitcoin aims to establish its price above the crucial resistance level of $70,000 with a possible move to the upside. Experts have predicted that if the price of Bitcoin manages to sustain the current bullish momentum, it will rally to a new record high, possibly trading above $100,000.
It is interesting to note that after the fourth halving event that occurred on April 20 this year, which is often followed by Bitcoin’s price rally, the price of the crypto asset has exhibited bullish sentiments ever since. The rally is reported to have coincided with a significant increase in spot buying and spot Bitcoin Exchange Traded fund (ETF) purchasing.
Analysis from CryptoQuant revealed that ETFs have recorded around $1.2 billion in new inflows, with data showing increased buyer interest in gaining exposure to the asset.
Trader Peter Brandt says Bitcoin’s bull run is following similar past post-halving cycles, and if it holds it could reach $130,000 by late next year. Brandt added that no method of analysis is fool-proof when it comes to guessing Bitcoin’s cycle high, but past highs have followed a similar growth pattern and if it continues he puts a bull market high in the $130,000 to $150,000 range.
While several crypto enthusiasts/ traders suggest that the bull run market has peaked, others suggest that a new bull run consistent with the Bitcoin post-halving price movement has begun.
Lead analyst for Glassnode who specializes in the study of the Bitcoin economy, James Check, stated that the market is still quite far from the true euphoria phase of the bull cycle. He adds that “we are on the boundary between enthusiasm and excitement, but not yet euphoric”.
Meanwhile, despite bullish optimism for the price of Bitcoin, several analysts have warned traders/investors to keep tabs on macro events that could trigger downside volatility in the near term.
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