- One analyst pointed to Bitcoin’s fractal patterns as evidence that holders are positioning the asset for sustained growth.
- Data suggested that Bitcoin is far from its cyclical market peak, leaving room for significant price gains.
In the short term, Bitcoin’s [BTC] performance over the past 24 hours reflects weaker sentiment as it dropped by 1.53%, with bearish trends gaining momentum. However, broader indicators suggest this pullback is temporary, with the market expected to recover as sentiment improves.
For a deeper dive into Bitcoin’s potential trajectory, AMBCrypto provides a detailed analysis of the key metrics shaping its outlook.
Long-term holders stay steady as short-term buyers provide key support
Analyst James Van Straten believes Bitcoin is at a pivotal moment similar to late 2020, when the asset dropped to $10,000 before climbing to $60,000.
Van Straten’s analysis highlights the importance of Short-Term Holders’ Realized Profit (STH RP) as a key support level. Historically, when BTC retraces to this level, buying activity picks up, helping push the price back up.
He noted:
“Notice how realized price has started to climb, while Long-Term Holders’ Realized Profit (LTH RP) remains flat or trends downward.”
Source: X
When long-term holders’ realized profits remain flat or decline, it often indicates they are confident in the asset’s long-term value and are holding or accumulating rather than selling. This behavior supports bullish momentum and stabilizes the market.
If the trend continues, BTC is likely to recover from its recent dip, with a rebound to the STH RP level implying a return to upward movement.
Further findings by AMBCrypto align with this outlook, pointing to additional indicators that support the potential for a price recovery.
Bitcoin market outlook: Room for further gains
Crypto analyst Ali Chart maintains that Bitcoin still has good upside potential in a recent post, with broader market sentiment remaining bullish. According to Ali, BTC is far from reaching a cyclical market top — a peak typically followed by a major decline.
In his words:
“BTC is far, far, far away from a market top!”
Ali’s analysis is based on the Market Value to Realized Value (MVRV) Z-Score, which currently places BTC in the lower range of the chart. This suggests ample room for growth, as the metric indicates that BTC has yet to approach overvalued territory.
Source: X
If the MVRV Z-Score begins trending upward, BTC’s price is likely to follow, potentially indicating the start of a sustained rally.
Will Bitcoin overtake Gold?
Recent analysis suggests that if Bitcoin continues to gain value relative to gold, it may eventually surpass the precious metal in dollar terms, as shown in the chart.
Read Bitcoin’s [BTC] Price Prediction 2024-25
This shift could occur if BTC breaks through its current support level, which has been limiting further declines.
Source: Trading View
A breakdown here would also highlight a change in market sentiment, with more investors viewing digital assets as a serious economic force — a development that would be bullish for Bitcoin.
