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Bitcoin (BTC) Breakout Above $73,000 Likely Despite Correction  

2 mins
Updated by Harsh Notariya
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In Brief

  • Bitcoin's (BTC) price, albeit the decline below $60,000, is still moving within a flag, validating the bullish pattern.
  • Coin days destroyed over the past 90 days have been low, suggesting investors are not eager to spend their holdings.
  • The 90-day MVRV Ratio also verifies the long-term bullish outlook, given its presence in the opportunity zone.
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Bitcoin’s (BTC) price was noted to have a considerable drawdown in the last three days, which brought BTC below $58,000. While many consider this to be the beginning of the bear market, it is simply a cool-down.

The mid to long-term outlook for the digital asset is still bullish and Bitcoin will likely validate this in the coming weeks.

Bitcoin Investors Are Still Focused on HODLing

Bitcoin’s price took a hit over the past 48 hours after exhibiting consolidation for the past couple of weeks. The drawdown across the crypto market wiped out nearly $600 million in two days, spooking investors. 

However, looking at BTC on-chain metrics, it seems that this decline was expected, and it is nothing but a short pause in the long-term rally. The Coin Days Destroyed (CDD) over a period of 90 days shows that long-term holders (LTHs) are largely anticipating a further run-up in Bitcoin’s price.

Low levels of CDD recorded mean investors are more likely to either accumulate or be less eager to spend their holdings due to the lower Bitcoin price. This reinforces optimism toward recovery, confirming the recent correction to be merely a market cool-down and not the beginning of a bear market.

Read More: Bitcoin Halving History: Everything You Need To Know

Bitcoin 90-day Coin Days Destroyed.
Bitcoin 90-day Coin Days Destroyed. Source: Glassnode

Further substantiating this is the Market Value to Realized Value (MVRV) ratio. The MVRV ratio gauges investor profit or loss. With Bitcoin’s 90-day MVRV at -9.5%, indicating losses, it is likely investors will hold off selling or move to accumulate BTC.

Historically, recovery happens within the -8% to -21% MVRV range, which often precedes rallies. Thus, this zone has been dubbed an accumulation opportunity zone.

If BTC holders act accordingly, Bitcoin’s price could soon see a recovery.

Bitcoin 90-day MVRV Ratio.
Bitcoin 90-day MVRV Ratio. Source: Santiment

BTC Price Prediction: Bullish Flag Persists

Bitcoin’s price trading at $57,444 is reeling from the drawdown that pulled BTC below $60,000. However, the digital asset is still above the lower trend line of the flag that BTC has been moving in for the past two months.

The flag pattern is characterized by a sharp price movement followed by a consolidation period in the form of a rectangular flag. The breakout from the flag pattern indicates the continuation of the uptrend.

The target for Bitcoin’s price based on the pattern is still $92,505, which would mark a 45% rally above the breakout point. However, the more practical target is a rally above $73,700 to push BTC toward a new all-time high.

Read More: What Happened at the Last Bitcoin Halving? Predictions for 2024

Bitcoin Price Analysis.
Bitcoin Price Analysis. Source: TradingView

This would require Bitcoin’s price to flip the $71,800 resistance into a support floor by first breaching the $68,500 barrier.

However, if BTC holders move to offset their losses and sell their holdings, the cryptocurrency could fall through the lower trend line. This would result in Bitcoin’s price falling below $52,000, effectively invalidating the bullish outlook.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Aaryamann Shrivastava
As a Mass Media (Journalism) graduate, my journey into cryptocurrency journalism has evolved into a distinguished role as an On-Chain Analyst over the past two and a half years. Collaborating with industry-leading media companies like FXStreet, AMBCrypto, and FXEmpire, I’ve delved deeply into the intricate realms of Crypto and Blockchain, crafting over 2,500 meticulously curated SEO-focused articles. Driven by a commitment to excellence, I remain steadfast in delivering the highest caliber...
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