Key Points
- Bitcoin’s (BTC) market cap could triple, pushing its price above $260,000, says CryptoQuant CEO Ki Young Ju.
- Analyst Crypto Ceaser’s analysis aligns with Ju’s prediction, pointing to a bullish cup-and-handle pattern on the BTC chart.
Ki Young Ju, the CEO of on-chain and market analytics firm CryptoQuant, suggests that the market capitalization of Bitcoin (BTC) could triple, potentially pushing its price above $260,000.
Bitcoin’s Potential Market Cap Growth
Ju’s prediction is based on the Bitcoin network’s fundamentals, which he believes could support a market cap three times its current size. He referred to a chart comparing Bitcoin’s price, hash rate, and market cap ratio, which indicates the cryptocurrency’s volatility and the resilience of the Bitcoin network.
The hash rate to market cap ratio assesses the growth of mining activity relative to the market capitalization. Ju believes that if this ratio continues to grow, it could potentially sustain Bitcoin’s price to $265,000.
Cup-and-Handle Pattern Indicates Bullish Trend
Crypto Ceaser, an analyst and trader, agrees with Ju’s views. Ceaser’s analysis revealed a large cup-and-handle pattern on the BTC chart. This pattern usually forms during a price consolidation period and is a bullish continuation pattern. If confirmed, the chart could project a BTC rally toward the technical target of the governing chart pattern at $273,693.
Crypto Ceaser also mentioned that Bitcoin’s price is currently in a critical area, consolidating below its all-time highs. If Bitcoin can start to trend above these highs this summer, then a strong rally to the upside and potentially a shorter cycle could be anticipated.
Crypto analyst and co-founder of CMCC Crest Willy Woo, however, noted that it is crucial for Bitcoin to hold above its short-term holder price of $59,500 to maintain its bullish trend.
Analysts at Glassnode also stated in a report that the average short-term holder acquisition price has always acted as a stiff barrier during bearish trends and provided strong support during bullish trends.
Crypto influencer Lark Davis shared similar sentiments, stating that Bitcoin needs to produce a decisive daily candlestick close above the 50-day simple moving average (SMA) to remain bullish.
Meanwhile, some traders believe that Bitcoin needs to break the trendline of Pennant and the 50 Daily SMA. Once the 65-66K level is broken, BTC could move on to 73.5K and then 76.5K, with the possibility of reaching 85.2K before the summer.
Bitcoin’s volatility seems to be cooling off slightly as the price has been consolidating in its current range. This is still at relatively low levels compared to the last cycle, and it’s likely to see a change as time goes on and the price leaves this range.
