Bitcoin’s recent surge to $66,000 has ignited speculation about the cryptocurrency’s bottom. Analyst Nebraskangooner suggests that a move to $75,000 could signal a bullish trend, while a drop below $58,000 might indicate otherwise.
On-chain data shows that 88.8% of Bitcoin supply is profitable, which has eased from earlier highs this year. This trend mirrors conditions observed in February 2024, when Bitcoin traded at $44,000, hinting at a possible cooling in market sentiment, possibly leading to a consolidation phase.
Crypto analyst Ali Martinez highlights an attractive buying opportunity indicated by Bitcoin’s MVRV Ratio. Historical data suggests significant gains for investors when this ratio dips below its 90-day average. Martinez’s analysis points to an average return of 67% during such periods, making this juncture potentially appealing for BTC investments.
However, caution is warranted due to the spike in transaction fees paid to Bitcoin miners, partly attributed to the Runes protocol. Moreover, there’s been a notable decline in creating new BTC addresses. These developments underscore the intricate relationship between network utilization and market sentiment.
Currently trading at $66,492.12, analysts and investors closely monitor Bitcoin’s price action and on-chain metrics. Forming a bullish flag pattern on the daily chart adds further intrigue, potentially setting the stage for an upward breakout towards new all-time highs in May, as forecasted by some.
