Bitcoin Rally Not Yet Over, Analyst Says, Still Waiting to Reach Escape Velocity – Here’s What That Means | Bitcoinist.com
Crypto analyst James Check (also known as Checkmatey) has predicted that Bitcoin could still make further moves to the upside. However, he warned about an “escape velocity” that could send the flagship crypto’s price spiraling down.
What The Escape Velocity Means And How It Affects Bitcoin
Simply put, escape velocity is the minimum speed at which a person or object needs to escape the Earth’s gravitational pull (i.e., the force that brings one back down to Earth). Crypto analyst James Check referred to this term while noting that it is likely that Bitcoin hasn’t reached the point of “euphoric escape velocity yet.”
This suggests that the crypto token has yet to reach a point where it can be said that its price is unlikely to drop beyond a critical support level like $70,000. The analyst remarked that Bitcoin not reaching escape velocity is a “good thing.” He further explained that this signals that the market is “unlikely to be over-stretched, over-bought, and over-saturated.”
Check mentioned that a break above $73,000 would turn short-term holders (STH) into “sufficient profit,” leading to some resistance to Bitcoin’s price. Basically, the analyst suggested that Bitcoin reaching that price level could lead to a wave of sell-offs from these short-term holders, which could cause Bitcoin’s price to stagger or even decline.
However, things could also turn out well as Check added that the $73,000 level could also be where an “escape velocity phase shift” takes place for Bitcoin’s price. Bitcoin reaching $73,000 is also significant because it is close to its current all-time high (ATH) of $73,750.
While highlighting an inverse head-and-shoulder pattern that had formed on Bitcoin’s chart, crypto analyst Crypto Jebb mentioned that there is a “great degree of likelihood” that Bitcoin would experience a rise to $100,000 should it break above $73,800.
Another Wave Of Demand Is Emerging
James Check noted that the market is seeing early signs of a new wave of demand that could send Bitcoin to a new ATH. He highlighted that the Spot Bitcoin ETFs look to have reversed from a four-week streak of net outflows to net inflows, with these funds recording over $1.2 billion in net inflows over the last weeks.
The crypto analyst claims that this occurrence “may well be the ground zero for that second wave of demand” if the net outflows phase is over. Generally, Check sounded bullish on Bitcoin’s future trajectory as he also noted that the crypto token is coming out of two months of healthy consolidation.
Based on this, he stated that he wouldn’t be surprised if Bitcoin is on the brink of setting a new all-time high. At the time of writing, Bitcoin is trading at around $69,400, down in the last 24 hours, according to data from CoinMarketCap.
BTC price readies to retest $70,000 | Source: BTCUSD on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com
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