This Important Metric Suggests Incoming ATH for BTC (Analyst)

TL;DR

Analysts predict a strong rally in BTC, driven by bullish market signals and potential hoarding by large entities. On the other hand, high profitability among the holders may suggest a short-term price correction. BTC Explosive Rally Incoming?

The leading digital asset traded sideways over the past weekend, hovering between $66,500 and $67,500. However, the start of the new week offered a fresh resurgence, with BTC rising well above $68,500.

BTC Price, Source: CoinGecko

Several analysts spotted the price increase, envisioning a much more exponential bomb in the near future. Popular X user Mikybull Crypto claimed that BTC experienced a “golden cross” a few hours ago. The trader noted that this development was witnessed exactly one year ago and was followed by a huge rally.

The so-called “golden cross” is a technical chart pattern that occurs when Bitcoin’s short-term moving average (often the 50-day) crosses above its longer-term moving average (for example, the 200-day). This is considered a bullish signal, suggesting a spark of positive sentiment in the market. The “golden cross” contrasts with the “death cross”, where the short-term average falls below the long-term average, indicating bearish times.

User X Ted chimed in as well. He maintained that the overall environment is quite bullish, with “ETFs piling up,” the odds of Donald Trump winning increasing, and big tech companies “talking about BTC.” He noted that despite these positive factors, “there is little or no movement.”

The investor believes that this is a “perfect match” by the large entities to keep the price low and increase their exposure. “Once they’re done with that, the supply shock will kick in, pushing BTC to new highs,” he predicted.

There are no underwater BTC investors

The recent revival of the asset has been more than beneficial for its holders. According to IntoTheBlock, a whopping 98% of all BTC investors are currently sitting on paper profits. No one is underwater, while only 2% is in balance.

BTC holders with profit, Source: IntoTheBlock

This may sound like good news for the incumbents, but it could also be a precursor to a short-term pullback. Remember that BTC’s profit offer was almost 95% at the beginning of the month when the price of the asset was trading above $69,000. Shortly thereafter, however, the asset underwent a substantial correction, briefly falling below $65.5K.

Similar scenarios were observed in September and March this year (when BTC reached a new ATH).

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