This week has been quite bullish, with the price of Bitcoin surpassing $70,000. While this is optimistic, there are still some doubts about the performance of digital assets and what they could mean for the future. To this end, Bitget research analyst Lacie Zhang shares her views on what role the BTC price plays and outlines the key factors affecting the current price and the broader cryptocurrency market.
Bitcoin price at key structural levels
Lacie Zhang, research analyst at Bitget, said in a statement shared with that the Bitcoin realized price and MVRV are converging. Considering the performance of past cycles, the analyst points out that this could mean Bitcoin may be nearing the end of its bear market.
In the past, this convergence of indicators has occurred near the end of bear markets, and this time will be no different. Additionally, it is associated with long-term accumulation, a trend that typically precedes the bottom of a bear market.
As Zhang further explained, this could mean that investors are now shifting from speculative selling to patient deployment of capital. This usually indicates a long-term accumulation trend as large investors begin to change their positions. Another factor is that Bitcoin ETF inflows continue to increase, showing the confidence of institutional officials.
If these factors all line up at roughly the same time for BTC, it could mean a trend reversal is coming. However, there is still a chance that prices will continue to decline, especially given that the broader macro dynamics are unclear.
First of all, geopolitical tensions remain, with the US-Iran war rocking markets earlier this month. Zhang also points to the relationship between the US dollar index and oil prices, which is tightening liquidity conditions. In these cases, risky assets tend to take the biggest hit, as evidenced by Bitcoin’s decline.
Predicting where the Bitcoin price will head, Zhang explained, “In the near term, Bitcoin is likely to fluctuate between $68,000 and $84,000 as the market seeks balance, while Ethereum could trade in the $1,800 to $2,500 range, driven by ongoing ecosystem development and increased adoption across decentralized finance and tokenized asset infrastructure.”
Featured image by Dall.E, chart by TradingView.com
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