According to a crypto analyst, if Bitcoin returns to $73,000, it could signify the start of the asset’s acceleration to “escape velocity.” In astrophysics, escape velocity refers to the minimum speed required for an object to escape the gravitational field of a celestial body without any additional propulsion. Crypto analyst James Check used this term in a market report to describe what Bitcoin could potentially do once it surpasses the $73,000 price point.
Check refers to the short-term holder (STH) market value to realized value (MVRV) metric, which suggests that the market is not yet overstretched or overbought. He explained that while the transition from enthusiasm to euphoria can happen quickly, it seems that Bitcoin has not reached the point of euphoric escape velocity yet. He believes that the market is still in a steady and stable phase, forming strong foundations for a potential price rally at $73,000.
However, Check also cautioned that this price point is where STH wallets, which are wallets that have held Bitcoin for less than 155 days, are now in sufficient profit. This may lead to a sell-off and create some resistance in the market. Other crypto analysts share a similar sentiment, stating that market euphoria has not yet materialized.
Despite this, there are optimistic views regarding Bitcoin’s future price. Some traders believe that Bitcoin is just a small step away from entering price discovery, indicating the potential for significant price growth. Pseudonymous trader Yoddha predicts that Bitcoin will reach its peak price before March 18, 2025.
A jump to $73,000 from the current price of $69,088 would be approximately a 5.6% increase, according to CoinMarketCap data. Bitcoin has seen a 5.22% increase over the past seven days.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment decisions.