It has been a journey of ups and downs since Bitcoin (BTC), the largest cryptocurrency by market cap, recorded an all-time high of around 68,500 back in November 2021. But today, the flagship crypto advanced into a new era after surpassing $69,000 to give enthusiasts the optimism of a rise to $100,000.
This milestone is the outcome of the bullish week. Bitcoin showcased a massive trend that was last witnessed about 3 years ago. As expected, the bullish trend is attributed to the influx of institutional investments from spot Bitcoin exchange-traded funds (ETFs) recently approved by the United States SEC.
These ETFs have been the strength of the crypto market lately. Data shows that about 75% of new money sent into Bitcoin came from these ETFs after the flagship crypto surpassed $50,000 in February.
Since the multiple ETFs got approved simultaneously, crypto analysts and proponents have been sharing bullish predictions such as $100,000 and $200,000 by the end of 2024.
Sell-off Follows Price Milestone
It’s not unusual for Bitcoin to see sell-offs after attaining price peaks. Following the breaking above $69,000, BTC nosedived swiftly to $63,000 before making a mild recovery back to the $65,000 level.
Before reaching the price milestone, a prominent crypto analyst Ali Martinez had forecasted a likely Bitcoin sell-off. According to the analyst, when the MVRV ratio surpasses the 19% level, the asset’s price can see about 24% or 55% correction.
The analyst said since February 2024, Bitcoin has always reacted negatively in terms of price each time the MVRV ratio on the Bitcoin chart reached these levels.
#Bitcoin MVRV indicator is at 19.57% right now! Since February 2021, each time it crossed the 18% threshold, $BTC price plunged by 24% to 55%.
Traders should monitor this trend as it anticipates a steep price correction! pic.twitter.com/kj3ysZPC46
— Ali (@ali_charts) March 5, 2024
Considering the current situation in the market, Bitcoin seems strong enough to weather any storm and rise to attain more milestones in the coming days.
With the anticipated halving and the bullish history around, enthusiasts are optimistic about seeing the King Crypto at higher prices this year, taking the whole market along.
At the time of writing, BTC is trading at $65,097, with a 2.6% price downtrend in the last 24 hours, according to CoinMarketCap.
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