Bitcoin’s value dropped to $61,500 recently following issues at Coinbase, but analysts are predicting a rally above $70,000 in the near future. Positive market indicators and exchange trends suggest reduced selling pressure, hinting at a potential price increase for the asset.
Despite reaching above $63,000 on May 13, Bitcoin’s price retraced to $61,500 on May 14. One possible reason for this drop could be Coinbase experiencing operational issues, causing many users to be unable to conduct transactions or withdrawals. Although the issue has been resolved, Bitcoin continues to trade below the $62,000 mark.
Several analysts are optimistic about a potential rally for Bitcoin. For instance, Captain Faibik set a midterm target of $78,000 and plans to invest 25% of his portfolio in BTC. Additionally, Crypto Rover identified an “inverse head & shoulders pattern” on Bitcoin’s price chart, indicating a potential surge towards $72,000.
Rekt Capital and Titan of Crypto also expressed bullish sentiments. Rekt Capital suggested that Bitcoin has passed the post-halving “danger zone” and is gearing up for a significant price increase. Titan of Crypto pointed out that the Risk-Adjusted Return Oscillator (RAR) indicator has entered the “overbought territory,” indicating that Bitcoin’s bull run is still ongoing and could last for at least eight more months.
In terms of market indicators, the MVRV (Market Value to Realized Value) ratio has shown a decline in recent weeks, with a score below 2 signaling a buying opportunity for Bitcoin. Additionally, Bitcoin’s exchange netflow has seen more outflows than inflows over the past week, indicating a shift towards self-custody methods and reducing immediate selling pressure, which is considered bullish for the asset.
Overall, despite the recent price drop, experts remain optimistic about Bitcoin’s future performance, with potential for a significant rally in the coming months.